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Piper Sandler Overweight on Qualcomm shares in light of Apple partnership

EditorEmilio Ghigini
Published 02/13/2024, 09:41 PM
Updated 02/13/2024, 09:41 PM
© Reuters.

On Tuesday, Piper Sandler confirmed its Overweight rating on shares of Qualcomm (NASDAQ:QCOM) with a steady price target of $165.00. The firm addressed investor concerns regarding Qualcomm's modem shipments and market share with Apple (NASDAQ:AAPL) devices. According to the firm, Qualcomm holds the entirety of the modem share for the 2023 iPhone 15. Additionally, Qualcomm has secured a three-year agreement with Apple covering phone models introduced in the years 2024, 2025, and 2026. Under this deal, Qualcomm anticipates retaining a 20% share of the modem market for the final model year, which corresponds to the 2026 iPhone release.

The reiteration of the Overweight rating by Piper Sandler comes amidst investor confusion over Qualcomm's business dealings with Apple, particularly in the modem sector. The firm sought to clarify the specifics of the partnership between the two tech giants, emphasizing the current and future stakes Qualcomm has in Apple's product lineup. This includes the exclusive supply of modems for the upcoming iPhone 15 and a significant share in the following three years.

The agreement between Qualcomm and Apple, which spans three years, indicates a sustained relationship that will influence Qualcomm's performance in the semiconductor and mobile communications markets. The deal ensures Qualcomm's presence in the Apple supply chain, with a secured share for the foreseeable future. This long-term arrangement underscores the strategic importance of Qualcomm's modem technology in Apple's product strategy.

Piper Sandler's affirmation of the $165.00 price target reflects confidence in Qualcomm's market position and its prospects within the industry. The firm's commentary aims to provide clarity to the investment community regarding Qualcomm's status as a supplier for one of the world's leading smartphone manufacturers.

Investors and market watchers will likely monitor Qualcomm's performance and its partnership with Apple, as these factors play a crucial role in the company's financial outlook. The clarified details about the modem share and the multi-year deal are expected to be significant considerations for those evaluating Qualcomm's stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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