The US chip manufacturer Qualcomm faces a downgrade of its rating by KeyBanc Capital Markets, which now rates the company at "Sector Weight." Originally, Qualcomm was rated as "Overweight" by KeyBanc, but a series of factors led to the reassessment. The analyst John Vinh justified the downgrade with increasing competition from key customer Apple and weak growth prospects in the area of edge AI.

Qualcomm, known for its key roles in mobile technology, is currently facing multiple challenges. The increasing competition, especially from Apple, which plans to develop its own modem chips and gradually shift away from Qualcomm products, threatens the chip manufacturer's market position. KeyBanc predicts that this move by Apple could lead to a reduction in earnings per share by $1.55 to $1.65.

Furthermore, the growth of Qualcomm in the field of edge AI has not developed as expected. Despite the current hype surrounding artificial intelligence, Qualcomm has not been able to establish a significant market presence here, which further burdens the company's short-term growth prospects. "The lack of a strong presence in the edge AI market reduces the likelihood of Qualcomm benefiting from a replacement cycle in this area," explained Vinh.

Another Point of Criticism is the Intensifying Competition in the Smartphone Segment.

Despite the Downgrade, the Majority of Analysts Remain Optimistic about Qualcomm.

Qualcomm faces the challenge of maintaining its market position in light of growing competition and strategic changes at key partners like Apple. The coming quarters will show whether the company is able to compensate for the forecasted market share losses and sustain its innovation power in the highly competitive technology environment.