Bernstein calls this stock the Rodney Dangerfield of chip industry, sees 26% gain

Bernstein reiterated its outperform rating for Qualcomm (QCOM) with a $185 price target, implying a 26% upside, arguing the stock is undervalued despite lingering doubts. Analyst Stacy Rasgon noted stabilization in the smartphone market, diversification into new revenue streams, and the priced-in loss of Apple as a customer as reasons for optimism, further suggesting the company's fundamentals are being overlooked by the market.

Analysis

Bernstein has reiterated an outperform rating for Qualcomm (QCOM) and maintained a $185 per share price target, implying approximately 26% potential upside from the stock's $146.63 closing price on Monday. Analyst Stacy Rasgon characterized Qualcomm as the "‘Rodney Dangerfield’ of semiconductor stocks," suggesting the market is not giving the company due respect despite positive fundamental developments. Rasgon highlighted that the smartphone market, a core area for Qualcomm, has stabilized, and the company is effectively diversifying its revenue streams into other growth areas. The anticipated headwind from Apple ceasing to be a modem customer is, according to Bernstein, already adequately priced into the current stock valuation. Additionally, broader competitive pressures have reportedly eased, and regulatory concerns have abated, further strengthening the investment case. The analyst also anticipates a bottoming of the smartphone market, which could serve as a significant tailwind for Qualcomm. Despite Qualcomm shares having slipped approximately 5% in 2025, Bernstein believes the product portfolio is stronger than ever, option value exists, and the shares are currently "very inexpensive."

Key Decisions for Investors

• Investors may consider the current valuation of Qualcomm as an opportunity, given Bernstein's reiterated outperform rating and 26% implied upside, particularly if they share the view that negative factors are already priced in.
• Monitor key indicators such as sustained smartphone market stabilization and the tangible progress of Qualcomm's revenue diversification efforts, as these are critical to validating the analyst's growth thesis.
• Evaluate the impact of the Apple modem business transition as it unfolds, alongside Qualcomm's ability to offset this through new product cycles and market share gains in diversified segments.