Bank of America has identified leading semiconductor stocks in the consumer-focused segment, where demand, particularly from smartphones, continues to face headwinds that could persist through 2027 unless memory prices find stability.
The semiconductor sector serving consumer markets, especially mobile devices, confronts ongoing challenges as sluggish demand conditions weigh on near-term growth prospects.
1. Qualcomm (QCOM)
Bank of America maintains a price objective of $145 for Qualcomm, based on 13 times its 2027 estimated non-GAAP earnings per share of $11.55.
Downside risks include modem roll-off at its top customer, potential share loss at a key Android customer, licensing renewal risk, and competition. Upside potential stems from auto and IoT diversification, AI inference accelerators, and on-device AI content.
2. Skyworks Solutions (SWKS)
Bank of America sets a $60 price objective for Skyworks Solutions, applying 11 times its 2027 estimated price-to-earnings ratio.
Upside risks include market share gains, 5G adoption, and M&A opportunities. Downside risks center on share loss from Apple, declining smartphone units, and pricing pressure.
