Qualcomm Inc. (QCOM): Navigating Global Smartphone Challenges with 5G and IoT Strength

Qualcomm Inc. (NASDAQ:QCOM) is one of the best cheap stocks to buy for 2026. On January 26, Mizuho trimmed its price target on Qualcomm Inc. (NASDAQ:QCOM) to $160 from $175 and kept a Neutral rating on the shares. The investment bank tied the update directly to a weaker outlook for global handset demand and related industry pressures.

Mizuho stated that it expects global handset shipments in calendar year 2026 to decline by about 4% compared to 2025. And there is a downside risk of more than 5% because, particularly in H2 2026, higher memory prices and supply shortages are expected to pressure production. The analysts highlighted that Chinese OEMs are likely to cut handset output by about 10%. Already, Chinese OEM handset inventory shrank to about two to four weeks from 13 to 17 weeks a year earlier. As such, many Android makers could face sharper pressure as memory prices rise through 2026.

Besides the weaker outlook, Mizuho sees Qualcomm facing tougher competition from MediaTek, especially concerning high-end chips. There is also the issue of content cuts by Apple and Huawei.

These headwinds together convinced Mizuho to project that Qualcomm’s earnings will decline about 3% year-on-year. And that the company will see only low single-digit growth over fiscal 2026 to 2028.

Qualcomm Inc. (NASDAQ:QCOM) designs and supplies semiconductors, software, and wireless technology solutions. It focuses on mobile connectivity, 5G infrastructure, and Internet of Things applications. Its operations include licensing wireless technologies and producing chipsets used in smartphones, automotive systems, and connected devices worldwide.

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