Goldman Starts Qualcomm Coverage at Neutral; Flags $135 Target, Apple Modem Threat
Goldman Sachs starts Qualcomm coverage at Neutral with a $135 12-month target, implying 6% upside and trading at 12x forward earnings versus a 14x median. Apple’s shift to internal modems threatens Qualcomm’s revenue, modeled to drop from $7.2 billion in fiscal 2025 to nearly zero by fiscal 2028.
1. Goldman Initiates Coverage
Goldman Sachs has begun coverage of Qualcomm with a Neutral rating and a 12-month price target of $135, implying roughly 6% upside from recent levels. The firm cites balanced risk/reward given current valuation at about 12x forward earnings.
2. Valuation and Price Target
Qualcomm’s forward multiple stands roughly two turns below its three-year median of 14x, with the price target reflecting limited near-term upside. Goldman analyst James Schneider highlights this valuation gap while noting near-term smartphone industry headwinds.
3. Apple Internal Modem Impact
Apple’s transition to internally designed modems poses an accelerating headwind, with Qualcomm’s modeled revenue contribution from Apple falling from $7.2 billion in fiscal 2025 to $1.9 billion in fiscal 2027, and nearly disappearing by fiscal 2028.
4. Diversification Counters Weakness
Goldman projects Qualcomm’s automotive revenue to grow at a 22% compound annual rate through fiscal 2028, driven by digital cockpit solutions, and forecasts 20% growth in industrial IoT for fiscal 2026, partially offsetting smartphone segment weakness.