Qualcomm, Inc. (NASDAQ:QCOM) shares have shed close to 27% year-to-date amid a broader market sell-off led by tech stocks.
An analyst at KeyBanc Capital Markets is bracing up for more upside in the stock over the next 12 months.
The Qualcomm Analyst: John Vinh maintained an Overweight rating on Qualcomm shares and raised the price target from $200 to $220.
The Qualcomm Takeaways: Qualcomm will likely be the sole supplier for Samsung's next-generation flagship GS23 smartphone in 2023, Vinh said.
The reorganization plans at Samsung have led to the South Korean company moving Exynos AP development into Samsung mobile in a bid to vertically integrate, the analyst said.
"We believe Samsung plans to revamp and fix performance issues with Exynos, which we expect ~2 years to complete and to reintroduce Exynos in the GS24 in 2024."
Qualcomm is expected to increase its share at Samsung from 75% to 100% in 2023, Vinh said.
Related Link: Qualcomm Readying Chip to Take On Apple's Newly-Unveiled M2 Processor, Says Analyst
Vinh also expects Apple, Inc. (NASDAQ:AAPL) to use Qualcomm's modem in the mmW version of the iPhone 15 in 2023. As opposed to the Qualcomm management's guidance of having 20% share of the iPhone 15, the analyst said he expects the Qualcomm modem will account for 60% of the iPhone 15 volume.
Taking these two factors into consideration, Vinh raised his calendar year 2023 revenue and earnings per share estimates to $3.03 billion and $1.26, respectively.
QCOM Price Action: Qualcomm shares are down 3.17% at $128.98 in premarket trading Monday, according to Benzinga Pro data.
