Street View: Data center ambitions take center stage as Qualcomm moves beyond handsets
QCOM•Broker focus turns to Qualcomm's data center execution
HSBC ("hold," PT: $165) says investors are likely to focus on the company's ability to scale its data center business, though execution and margin risks remain.
Bernstein ("market-perform," PT: $165) says the company has the potential to reduce its dependence on smartphones as data center and adjacent businesses scale in the coming years.
Morgan Stanley ("equal-weight," PT: $220) says investors are likely to watch how quickly those segments scale and offset margin pressure from the Apple transition.
UBS ("neutral," PT: $170) says recovery in China Android demand and a ramp-up in data-center revenue should largely offset the Apple headwind, helping shift investor focus toward the company's diversification efforts.
Qualcomm flags weaker Q4 profit but sees data center growth offsetting Apple decline
Qualcomm QCOM.O on Wednesday forecast weaker-than-expected Q4 profit and said revenue from Apple products would decline faster than expected, but signaled growth in data center and other non-handset segments would more than compensate for revenue loss by fiscal 2027.
Shares fell 3% premarket.
