Qualcomm Price Target Cut 10% to $140 Over DRAM Inventory Destocking Risk
Morgan Stanley cut its price target by 10% to $140 and retained an equal-weight rating due to persistent memory market oversupply. The bank warned that prolonged DRAM inventory destocking could further squeeze Qualcomm’s chipset orders in coming quarters.
1. Analyst Rating Revision
Morgan Stanley reduced its 12-month price target on Qualcomm by 10% to $140 while maintaining an equal-weight rating, citing growing downside risks to earnings.
2. DRAM Market Oversupply
The firm highlighted sustained oversupply in the DRAM sector, leading to inventory destocking that is delaying customer orders for application processors.
3. Impact on Qualcomm Shipments
Slower memory restocking cycles are expected to weigh on Qualcomm’s chipset revenue, as smartphone and IoT device makers trim purchase commitments through mid-2026.
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