Qualcomm (QCOM.US) announced its performance is about to be included in JP Morgan's "Positive Catalyst Watchlist".

Qualcomm (QCOM.US) was included in JPMorgan's positive catalyst watchlist before announcing its first quarter financial results on February 5th. JPMorgan analyst Samik Chatterjee gave Qualcomm a "hold" rating with a target price of $200. In a report to clients, Chatterjee wrote, "We believe Qualcomm's profit situation is positive, which will help alleviate concerns about a decrease in revenue from Apple Inc. in the coming years, although this may only be temporary." Positive factors include "strong growth" in the Chinese smartphone market in the last quarter (impacting Apple Inc. and Samsung), as Qualcomm has opportunities in the Chinese smartphone market. Chatterjee also added that recent government subsidies could help drive device replacements, leading to continued growth for Qualcomm. Chatterjee further stated that other positive factors include the potential revenue from the Samsung Galaxy S25 smartphone, as well as investors shifting their focus from losses related to Apple Inc. revenue back to "strong content-driven factors related to higher silicon content to support artificial intelligence features on high-end devices." Chatterjee explained, "In this regard, we see revenue recovering to double-digit growth with the support of a diversified end market, prompting a reevaluation of the P/E ratio, which still remains at a modest level of 14 times, or at a moderate level excluding Apple Inc.'s contribution to QCT revenue."