03:43 PM EDT, 06/17/2025 (MT Newswires) -- Qualcomm's ( QCOM ) stock likely has "limited" near-term catalysts, though the chip supplier is poised to benefit from several growth initiatives in the long term, BofA Securities said Tuesday.

The brokerage lowered its price objective on the company's stock to $200 from $245, but reiterated its buy rating.

"The handset market is mature, and we don't envision any major growth catalyst," BofA analyst Tal Liani said in a note to clients. "We expect recent smartphone growth to reverse, as the impact of product launches and channel fill in China erodes, share gains at Samsung subside and Apple ( AAPL ) starts using its own modem for non-pro phones."

Although non-handsets are showing "solid" year-over-year growth rates, it's mostly attributed to easy comparisons, Liani wrote. The sequential trends through the third quarter of the fiscal year are flat to slightly down. Artificial intelligence personal computer and data center connectivity may contribute to growth, but it could take time to "carry enough weight" to counter the trends seen in the smartphone business, according to the note.

BofA reduced its annual earnings projections for Qualcomm ( QCOM ) through 2027.

The company's shares were down 1.5% in Tuesday late-afternoon trade.

However, BofA pointed to "significant" growth potential in the Internet of things, or IoT, and automotive businesses.

"The company continues to diversify its semiconductor revenue streams, and we believe AI PCs, data center silicon, automotive and IoT could contribute 40% of (Qualcomm CDMA technologies) revenues by 2030 versus 27% currently," Liani said. The brokerage counts Qualcomm's ( QCOM ) recent deal to acquire UK's Alphawave IP Group among the positives for the chip supplier.

The Qualcomm CDMA technologies division represents the semiconductor business.

Despite the smartphone market's maturity, BofA said that "on-device AI and continued expansion in the premium tier could support stable growth." The brokerage projects a 4.5% and 20% compound annual growth rate for handsets and non-handsets between 2024 and 2029, respectively, according to the note.

Price: 154.98, Change: -1.89, Percent Change: -1.20