Investing.com -- JPMorgan initiated coverage of Qualcomm (NASDAQ:QCOM) with an Overweight rating and a December 2025 price target of $185 per share in a note on Tuesday.

The investment bank highlighted strong long-term growth prospects despite near-term headwinds.

“While there are near-term concerns around the pull-forward of smartphone demand,” JPMorgan said, “we remain convinced around the long-term opportunity for the company in relation to a re-rating stemming from a successful diversification from smartphone revenues.”

The analysts highlighted Qualcomm’s efforts to reduce dependence on smartphone sales, noting the company has “scaled its IOT as well as its Autos revenues/pipeline, with strong growth drivers helping the company stand out in relation to trends relative to smartphone supplier pure plays.”

JPMorgan also pointed to Qualcomm’s expansion into adjacent markets, particularly datacenters. 

“The company has in our view shown an incremental interest in relation to further diversification… with its technology from the acquisition of Nuvia giving it a head start in the market.”

The bank explains that shares currently trade at 13x next-twelve-month P/E and 12x FY27 consensus EPS, excluding most of Apple’s contribution to QCT revenues. 

JPMorgan sees a path to a higher multiple: “We see a road to trading at 20x+ P/E multiple helped by the double-digit growth (ex-Apple)” driven by multiple factors including content growth in smartphones, “strong double-digit growth in the Automotive segment,” a forecasted “21% CAGR in IOT revenues,” and new datacenter opportunities.

While near-term performance may be boosted by tariff-driven “pull-forward of smartphone volumes,” JPMorgan cautioned that “the lack of visibility into the continuation of the pull-forward is likely to drive the company to issue a guide modestly below consensus.”

The firm also expects a moderation in Apple-related volumes later in the year. Still, JPMorgan’s rating reflects confidence that Qualcomm’s strategic pivot will unlock meaningful long-term value.

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