Qualcomm: Wall Street's Tolerance Is Diminishing

Qualcomm Stock Performance: Qualcomm's shares have dropped nearly 5% at the start of the new year, trading below $170, following a downgrade by Mizuhō, which changed its rating from Outperform to Neutral and lowered its price target from $200 to $175.

Investor Sentiment: The downgrade has unsettled investors, leading to questions about whether they should continue holding Qualcomm shares or consider selling, especially as the company faces challenges in its core handset business and competition from local suppliers.

Market Outlook: Analysts have noted that while Qualcomm's diversification efforts into automotive and IoT are gaining traction, they may not fully offset the near-term pressures from the handset market, which is experiencing weakening demand, particularly in China.

Earnings Expectations: Qualcomm is set to report earnings in early February, and the stock's performance leading up to this event will be crucial in determining investor confidence and potential recovery, especially if it can stabilize above $160.