The impact of Qualcomm Inc. 's (QCOM  ) market diversification efforts may be partly offset by share losses at its key smartphone customer accounts, Apple Inc. (AAPL  ) and Chinese OEMs, according to Goldman Sachs.

The Qualcomm Analyst: Analyst James Schneider initiated coverage with a Neutral rating and price target of $135.

The Qualcomm Thesis: Market share loss at key smartphone customer accounts could act as a headwind to the company's fundamentals in the near term, Schneider said in the note.

Rising memory costs are likely to cause demand destruction in the smartphone segment, which is Qualcomm's largest segment, he added.

The company has been working on diversifying its revenue stream "by leveraging its IP to serve adjacent markets including automotive, PCs and datacenters," the analyst wrote.

The company's automotive solutions could benefit from strong secular growth and industrial IoT solutions, "given the strong end market recovery in that segment," he further stated.

QCOM Price Action: Qualcomm shares were up 0.59% at $127.86 at the time of publication on Monday, according to Benzinga Pro data.