Qualcomm Price Target Jumps to $231 After $5B 2027 Data Center Forecast
QCOM•Morgan Stanley upgraded Qualcomm to Equal-weight and raised its price target to $231 from $146 after investor day revealed a $5 billion data center revenue forecast for fiscal 2027 that doubles prior estimates. The bank labeled Qualcomm’s $15 billion 2029 data center goal aspirational, citing execution risks in server CPUs.
1. Rating Upgrade and Price Target Increase
Morgan Stanley upgraded Qualcomm to Equal-weight from Underweight and boosted its price target to $231 from $146, reflecting growing confidence in the company’s AI and data center prospects.
2. Fiscal 2027 Data Center Forecast
Qualcomm’s management forecast $5 billion in data center revenue for fiscal 2027, more than double previous analyst expectations, pushing the company into the category of AI infrastructure beneficiaries.
3. Long-Term $15B Target and Aspirational Label
The firm’s longer-term aim of $15 billion in data center sales by fiscal 2029 was characterized as aspirational, highlighting uncertainty around scaling accelerator and server CPU offerings.
4. Execution Risks and Market Considerations
Analysts pointed to execution risks, including late 2028 CPU market entry amid stiff competition from NVIDIA, AMD, Intel and custom silicon, along with ongoing smartphone market headwinds limiting a full overweight rating.
