Mizuho Cuts Qualcomm Price Target to $160 as Tepper Boosts Stake
Mizuho Securities cut its Qualcomm price target from $175 to $160 on January 25, signaling a more cautious outlook despite a current trading price near $155.82. Hedge fund manager David Tepper also increased his Qualcomm holdings, citing the stock’s 13 forward P/E as evidence of undervaluation.
1. Mizuho Lowers Price Target on Qualcomm
On January 25, 2026, Vijay Rakesh of Mizuho Securities trimmed his 12-month price target for Qualcomm from $175 to $160, signaling a more cautious stance despite the company’s leading role in mobile communications and semiconductor design. This revision reflects concerns over near-term margin pressures in its baseband chip segment and increased competition from rival foundries. Rakesh maintained a neutral rating, citing that Qualcomm’s forward-looking guidance for the coming quarters will be critical in validating its ability to sustain double-digit revenue growth in data-centers and automotive applications.
2. Institutional Investors Ramp Up Holdings
Large funds are showing confidence in Qualcomm’s long-term prospects. Commerzbank Aktiengesellschaft FI boosted its stake by 1.7%, now owning 472,843 shares valued at $78.7 million, making Qualcomm its 20th largest holding and representing 1.6% of its total portfolio. First Citizens Bank and Trust Co. expanded its position by 3.9% in the third quarter, while Harbor Capital Advisors increased its holdings by over 70%. These accumulations underscore a view that Qualcomm’s diversification into AI inference chips and automotive connectivity will drive sustained revenue gains beyond its traditional smartphone baseband business.
3. David Tepper Reinvests in Qualcomm as AI Play
Appaloosa Management’s latest 13F filing reveals that billionaire David Tepper sold down positions in Intel, Oracle and Micron to redeploy capital into Qualcomm, viewing it as an undervalued AI-chip supplier. Qualcomm’s stock has delivered a 31,000% gain since its early-1990s IPO but stalled over the past two years. Tepper’s contrarian move reflects conviction in Qualcomm’s upcoming AI200 and AI250 rack-level inference solutions, set to launch in 2026–27, and its potential to capture on-device AI workloads in next-generation smartphones. At a forward P/E of 13, the company trades at a discount to peers despite a projected 20% compound annual revenue growth in its non-baseband segments.
4. Hedge Funds and Insider Activity Signal Cautious Optimism
In the most recent quarter, Cullen Frost Bankers cut its Qualcomm position by 25%, selling 59,337 shares but still holding 177,976 shares valued at $29.6 million. Meanwhile, insiders reduced holdings by approximately 44,820 shares worth $7.9 million over the past three months. On the corporate front, Qualcomm reported third-quarter revenue of $11.27 billion—up 10% year-over-year—with non-GAAP EPS of $3.00 beating consensus by $0.13. The board declared a quarterly dividend of $0.89 per share, implying a 2.3% yield, and set Q1 guidance of $3.30–$3.50 EPS, reinforcing confidence in cash generation despite cyclical end-market headwinds.