JPMorgan has downgraded Qualcomm to Neutral from Overweight and cut its price target from $185 to $140, and put the stock on “Negative Catalyst Watch” ahead of its upcoming earnings report. The company's core handset business is under pressure and newer growth areas are not yet large enough to offset this weakness. JPMorgan expects QCT revenue to decline 22% in calendar 2026, worse than the 17% decline expected by the Street. The firm's current forward P/E multiple of just over 12x only looks cheap if earnings hold, and if handset weakness persists and exposure to premium customers shrinks, the stock may not be cheap relative to normalized earnings power. Despite progress outside of smartphones, Qualcomm's automotive revenue reached $1.1 billion, up 15% year over year, and management expects more than 35% growth in fiscal Q2'26.