BofA Sees Qualcomm (QCOM) Riding IoT and Automotive Growth to $200 Target

QUALCOMM Inc. (NASDAQ:QCOM) is one of the best large-cap tech stocks to buy now. On July 31, Bank of America Securities analyst Tal Liani reaffirmed his Buy rating on Qualcomm and kept the $200 price target. His view comes after the company’s Q3 FY 2025 results, which showed continued strength outside the handset market, especially in automotive and IoT, both delivering solid growth. Liani noted that these areas now represent a sizable share of QCT revenue (Qualcomm CDMA Technologies segment) and should expand further in the years ahead.

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Looking at the finer detail of the results, for Q3, the company’s total revenue surged 10% year-over-year to $10.4 billion, and adjusted EPS rose 19% to $2.77 due to better operating leverage. While revenue in its licensing business (QTL) rose 4%, QCT revenue was up 11%. Within QCT, IoT (+24%) and Automotive (+21%) stole the show, while Handsets revenue was also up a healthy 7%. Notably, for Q4, the company expects Handset revenues to grow around 5% sequentially, whereas IoT is expected to remain flat.

Liani believes that while handset demand, particularly in China, remains a headwind, Qualcomm’s upbeat guidance for the following quarter points to a rebound in that segment. He also sees meaningful upside from the company’s push into data center solutions, where it is aiming for leadership in CPU and NPU technologies. Taken together, these factors underpin the analysts’ constructive outlook on the stock.

QUALCOMM Inc. (NASDAQ:QCOM) is a semiconductor technology company that specializes in wireless communications. It engages in 5G technology, supplies chipsets and system-on-chip solutions for mobile devices, automotive applications, and the Internet of Things (IoT). Its Snapdragon processors are widely used across smartphones and connected devices.

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Disclosure: None. This article is originally published at Insider Monkey.