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Earnings Analysis

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Summary

Qualcomm Incorporated is downgraded to hold after a sharp rally, reaching my intrinsic value target near $170.

QCOM surged on reports of a potential OpenAI partnership, but mass production for related devices is not expected until 2028.

Despite bullish semiconductor sector sentiment, QCOM faces headwinds: declining EPS estimates, potential market share loss, and rising memory costs.

Technical indicators and extreme RSI suggest QCOM is at resistance, with a possible pause or pullback likely after the upcoming Q2 report.

JHVEPhoto/iStock Editorial via Getty Images

QUALCOMM Incorporated ( QCOM ) soared 12% on Monday, April 27. It’s the latest semiconductor industry stock to jump during what has been a historic chip rally. The iShares Semiconductor ETF ( SOXX

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.…