KeyBanc Reiterates Sector Weight Rating on Qualcomm

KeyBanc analyst John Vinh reiterated a Sector Weight rating on Qualcomm (NASDAQ: QCOM).

“In Line Results, Lower China Builds Results in Lowered Outlook; Preview of Data Center Plans Provided; QCOM posted in line F2Q (Mar) results and guided F3Q (Jun) lower.

Downside was due to weak demand at China Android OEMs.

However, F3Q is expected to be the botton, as OEMs restock inventory in F4Q given 1H undershipments. Reg AAPL, iPhone share is reit. at 20%, while AAPL rev in FY27 is expected to be $2B.

Notably, QCOM indicated it has a tier-1 hyperscaler DC ASIC win that is expected to ramp CQ4 but would not indicate what kind of ASIC either CPU or acclerator.

We think it’s likely a prior Alpha Wave win. As such, we’re updating ests and remain SW, as the pivot to IoT/auto/DC will take time.”

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