QUALCOMM Incorporated

(NASDAQ Global Select)
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Bullish +75

Daiwa Upgrades QUALCOMM (QCOM) to Outperform

AI-generated analysis

πŸ“ˆ Daiwa upgraded QUALCOMM (QCOM) to Outperform and raised its price target to $225 from $140 on May 8, 2026.

βš–οΈ The upgrade acknowledges mixed Q2 results where automotive and IoT growth offset weaker handset performance.

πŸ“‰ Q3 guidance was softer, but investors are now focusing on the emerging data center AI CPU opportunity.

🏒 Analysts believe Qualcomm's low valuation makes it attractive compared to other semiconductor names in the Arm-based AI inference trend.

πŸš€ Tigress Financial raised its price target to $280 from $270 while maintaining a Buy rating.

πŸ’‘ Tigress cited Qualcomm's expansion beyond wireless into AI-driven connectivity across devices, vehicles, and data centers as key drivers.

πŸ’° Baird raised its price target significantly to $300 from $177 following fiscal Q1 results.

πŸ“Š Fiscal Q2 EPS reached $2.65 against a consensus of $2.56, slightly beating estimates.

πŸ’΅ Revenue totaled $10.60 billion, matching expectations of $10.58 billion despite a challenging memory environment.

πŸ€– Management highlighted that AI agents are reshaping the product roadmap and driving entry into the data center market.

πŸ”‹ A custom silicon engagement with a leading hyperscaler for data center shipments is on track to begin later this year.

πŸ“… Further updates on data center and Physical AI initiatives are expected at the June 24 investor day.

🌍 QUALCOMM develops and commercializes foundational wireless technologies globally across multiple sectors.

Bullish Signals
  • Analyst Louis Miscioscia of Daiwa upgraded QUALCOMM (QCOM) to Outperform and raised the price target from $140 to $225 on May 8, 2026.
  • Tigress Financial raised its price target on QCOM to $280 while maintaining a Buy rating, citing the company's expansion into AI-driven connectivity across devices, vehicles, and data centers.
  • Baird raised its price target on QUALCOMM to $300 from $177 following fiscal Q1 results, reinforcing their Outperform rating.
  • QUALCOMM reported fiscal Q2 EPS of $2.65, beating the $2.56 consensus estimate, with revenue of $10.60B exceeding expectations of $10.58B.
  • The company delivered solid execution despite a challenging memory environment, with strong growth in Automotive and IoT segments offsetting weaker handset performance.
  • Qualcomm highlighted a promising data center AI CPU opportunity that could benefit from broader Arm-based AI inference trends while trading at a relatively low valuation.
  • A custom silicon engagement with a leading hyperscaler for the data center market is on track for initial shipments later this year, providing a significant near-term catalyst.
Risk Factors
  • Fiscal Q2 results were mixed with weaker handset performance and softer guidance for the upcoming quarter.
  • Daiwa analyst noted that investor attention is shifting away from traditional areas toward emerging data center AI CPU opportunities, potentially diverting focus from core strengths.
  • The company reported results in a challenging memory environment which could pressure margins.
  • Analysts suggest that while QCOM has potential, other AI stocks may offer greater upside with less downside risk compared to Qualcomm.
Full Analysis
Daiwa Analyst Louis Miscioscia upgraded QUALCOMM Incorporated (NASDAQ:QCOM) to Outperform from Neutral and increased the price target from $140 to $225 on May 8, 2026. The analyst cited mixed fiscal Q2 results where strong growth in Automotive and IoT segments was offset by weaker handset performance and softer Q3 guidance, though they highlighted investor interest shifting toward Qualcomm’s emerging data center AI CPU opportunity. Simultaneously, Tigress Financial raised its price target to $280 from $270 with a Buy rating, noting the company's expansion into AI-driven connectivity across devices and vehicles. Additionally, Baird had previously raised its price target to $300 on May 1, 2026, following fiscal Q1 results. Qualcomm reported fiscal Q2 EPS of $2.65 against a $2.56 consensus estimate, with revenue totaling $10.6 billion versus expectations of $10.58 billion. The company described results as in line with guidance and reflecting solid execution despite a challenging memory environment. Management noted that AI agents are reshaping the product roadmap across platforms and confirmed that custom silicon engagement with a leading hyperscaler for the data center market remains on track for initial shipments later this year. Qualcomm expects to provide further updates on its data center and Physical AI initiatives during its investor day scheduled for June 24, 2026.