** Qualcomm QCOM.O projected stronger-than-expected quarterly sales on hopes of rising AI device demand, but its reliance on high-end smartphone chips and the expected loss of Apple as a modem customer overshadowed the outlook
** Shares down almost 7% at $148.20 in premarket trading
BUILDING BEYOND APPLE
** BofA ("buy," PT: $200) says Qualcomm's high China exposure (~68% of QCT handset revenue) is a key risk, while its data center push, driven by CPU/NPU leadership and the Alphawave deal, offers long-term upside with revenue, likely from 2028
** JP Morgan("overweight," PT: $200) says Qualcomm remains strong despite Apple cutting back, thanks to growth in non-Apple phones, autos, and Internet of Things (IoT) segments
** Oppenheimer ("perform," PT: NA) says it sees structural risk for co due to potential multi-year loss of its top customer, Apple, intensifying competition in the baseband market, and stronger positioning of RF incumbents with leading smartphone OEMs
** Morningstar (fairvalue: $170) sees Qualcomm as steadily diversifying beyond handsets, especially into automotive and IoT, but handset weakness and Apple risks are weighing on sentiment
(Reporting by Rashika Singh in Bengaluru)
((rashika.singh@thomsonreuters.com))
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