Multiple Analysts Downgrade Qualcomm Amid Stagnant Growth Concerns

Several analysts at Bank of America (BofA) have downgraded Qualcomm due to concerns about stagnant growth prospects. This, coupled with the company's challenges in the handset and memory markets, has led to a sell rating from multiple analysts and a decline in share price. Analysts' concerns about Apple's impact on Qualcomm's growth have also weighed on investor confidence.

Bank of America issued a rare double-downgrade on QCOM, moving from Buy to Underperform with a $145 price target, citing stagnant growth prospects and mounting competitive headwinds. Analyst Vivek Arya warned of an approximately 15% decline in handset unit volumes this year — far worse than the prior 2% consensus expectation — driven largely by memory pricing volatility affecting the smartphone market.

The downgrade reflects deeper structural concerns: BofA projects just 2% annual revenue growth and roughly 1% earnings-per-share growth for Qualcomm between 2025 and 2028, compared to the semiconductor sector's expected 17% growth rate. The handset market, which accounts for 74% of Qualcomm's QCT revenue, has matured, and Apple's gradual transition to its own modem chips poses an additional long-term revenue headwind.

Multiple other analysts have echoed the cautious outlook, with price targets ranging from $145 to $170 and several underperform ratings issued in quick succession. The combined effect has weighed on Qualcomm shares, with the stock declining roughly 3% following the downgrades. Investors should watch for Qualcomm's ability to diversify into automotive and IoT segments as offsets to the maturing handset business.