Qualcomm (QCOM) is facing a weaker handset market amid rising memory prices and market share losses, BofA Securities said in a note Thursday.

"Rising memory prices and share losses are hindering the handset growth profile," the note said.

The report said that handsets, which account for 74% of Qualcomm CDMA Technologies, or QCT, revenue, are now expected to see about 15% decline in unit volumes this year, compared with a previously expected 2% decline.

The note also pointed to cyclical and structural pressures, including rising memory prices, market share losses at Samsung and Apple (AAPL), and a likely seasonal slowdown in China.

As a result, QCT revenues are expected to decline 1.5% in fiscal 2026, and near-term stock catalysts appear limited despite the stock's relatively inexpensive valuation, the analysts added.

BofA downgraded Qualcomm to neutral from buy and slashed its price target to $155 from $215.

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