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Sell Qualcomm on Intel competition: BMO

Attendees mingle in the Qualcomm booth at the International Consumer Electronics Show in Las Vegas.
Daniel Acker | Bloomberg | Getty Images

Qualcomm is losing market share to Intel and other competitors, which will lead to a poor earnings outlook when the chipmaker reports next week, according to BMO.

"We expect a meaningful guide down for the September quarter, mostly in the licensing business. ... We believe management and consensus will be lowering numbers for awhile," BMO analyst Tim Long wrote in a note to clients Thursday, downgrading the name to underperform from market perform.

"We expect the stock to pull back as estimates are lowered, while more tangible signs of share losses could pressure the multiple."