Qualcomm Gains Upgrades with $185 and $150 Targets; AI Chips Seen Generating $5B-7B
Qualcomm shares climbed after Loop Capital upgraded to Buy with a $185 target and Wells Fargo raised to Equal-Weight with a $150 target. Wells Fargo projects Qualcomm’s two data-center AI chips could generate $5 billion to $7 billion in annual revenue by 2027.
1. Analyst Upgrades
Loop Capital upgraded Qualcomm to Buy with a $185 target while Wells Fargo raised its rating to Equal-Weight and set a $150 target on expectations of improved growth and valuation alignment.
2. AI Data Center Opportunity
Qualcomm’s two AI chips unveiled for data centers last year are projected to contribute $5 billion to $7 billion in annual revenue by 2027, reflecting entry into the $100 billion-plus AI inference market.
3. Strategic Acquisitions and Capacity
Recent acquisitions of Alphawave Semi and Ventana bring advanced memory, connectivity IP and CPU architectures into Qualcomm’s portfolio, while advanced wafer allocation at TSMC’s 2 nanometer process provides manufacturing capacity for its data-center AI products.