Why This Analyst Just Slashed Their Price Target on Qualcomm Stock by 30%

Amidst growth concerns, Qualcomm (QCOM) stock has crumbled by 23% in the last month. While the sharp correction seems like a buying opportunity, sustained earnings growth headwinds can be a deterrent to a renewed rally. 

Recently, Bank of America Securities downgraded QCOM stock to “Neutral” from “Buy” with a price target of $155. The key reason for the downgrade is memory supply constraints that are negatively impacting the handset market. BofA analysts also noted that an increase in memory prices has impacted the “inventory plans of smartphone OEMs, primarily in China.” Further, these constraints are likely to persist until CY28.