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Qualcomm (QCOM) stock is in the spotlight once again as Bank of America initiated coverage with an “Underperform” rating, indicating that the semiconductor and communications giant may not be able to achieve robust growth in the coming years. The company is facing difficulties in terms of its customer concentration and rising competition in the semiconductor industry.
Analyst Vivek Arya stated that Qualcomm is currently in a dominant position in terms of smartphone processor sales but indicated that the overall smartphone industry is maturing. Therefore, it is difficult for Qualcomm to achieve incremental sales in the coming years since its key customers are working toward developing their own chipsets. This warning is crucial for investors at a time when the semiconductor industry is highly competitive and dynamic in terms of technological advancements.
