10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing

8. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E as of June 19: 12.76

Analysts’ Price Target Upside as of June 19: 13.56%

Number of Hedge Fund Holdings as of Q1 2025: 82

QUALCOMM Incorporated (NASDAQ:QCOM) is also on the list of 10 undervalued blue chip stocks analysts recommend for smart investing. On June 17, Bank of America (BofA) adjusted its price target for Qualcomm from $245 to $200. The firm maintained a “Buy” rating for the stock.

According to BofA analysts, the smartphone market has peaked. And seeing that it accounts for the bulk of Qualcomm’s CDMA Technologies (QCT) revenues (73%), the analysts see limited near-term catalysts for the stock. The analysts also point to Apple (NASDAQ:AAPL) as a factor that poses risks to Qualcomm’s bottom line. Apple is working on in-house modems, which means lower sales for Qualcomm. The analysts forecast Apple’s contribution to Qualcomm’s handset revenues to plummet to 6% in FY2027 compared to 15% in FY2024.

Despite the lowered target, BofA analysts believe the stock is still a “Buy.” In other words, the firm sees enough upside potential to justify Qualcomm’s shares. The analysts acknowledge Qualcomm’s strong growth potential in the Internet of Things (IoT) and automotive sectors, up 27% and 59% year-over-year, respectively, in Q2 FY2025.

QUALCOMM Incorporated (NASDAQ:QCOM) is a global semiconductor and wireless technology company. It designs and supplies chips and system software for smartphones, automotive systems, Internet of Things (IoT) devices, and edge computing. The company serves major device makers like Samsung and Apple.