Qualcomm Forecasts $5 B Data Center Revenue, Morgan Stanley Lifts PT to $231
QCOM•Morgan Stanley raised Qualcomm’s price target to $231 from $146 after the chipmaker projected $5 billion in data center revenue for fiscal 2027, double earlier estimates. The firm cautioned the aspirational $15 billion by fiscal 2029 target faces execution risks amid intensifying AI accelerator competition and smartphone market headwinds.
1. Investor Day Data Center Targets
Qualcomm’s recent investor day unveiled a $5 billion data center revenue goal for fiscal 2027, more than doubling previous estimates. Management also outlined a longer-term target of $15 billion by fiscal 2029, marking a significant push into AI accelerator and server CPU markets despite fierce competition from incumbents.
2. Morgan Stanley Upgrade and Outlook
Morgan Stanley upgraded Qualcomm from Underweight to Equal-weight and lifted its price target to $231 from $146, citing underappreciated AI ambitions. The analyst noted credible management execution and year-to-date underperformance but flagged execution risk on new products and ongoing smartphone market headwinds.
