"Daiwa upgraded Qualcomm ( NASDAQ:QCOM | QCOM Price Prediction) to Outperform from Neutral on May 8, 2026, raising its price target to $225 from $140. Analyst Louis Miscioscia argues that Qualcomm's identity is shifting from smartphone chip supplier to broader AI infrastructure participant, and that the market is undervaluing the transition."
"Miscioscia asserts that Qualcomm could ride the same Arm-based AI inference trends fueling enthusiasm for Arm Holdings ( NASDAQ:ARM) and Intel ( NASDAQ:INTC). As AI workloads migrate from NVIDIA ( NASDAQ:NVDA) GPU-dominated training toward inference, Arm-based CPUs and accelerators gain relevance."
"The bank also cites Qualcomm's relatively low valuation within semiconductors and flags the June 24 Investor Day as a catalyst for further detail on the data center roadmap. Securing additional hyperscaler design wins would be the proof point bulls need."
"Qualcomm reported Q2 FY2026 revenue of $10.599 billion, down 3% year over year (YoY), with non-GAAP EPS of $2.65 beating consensus. Automotive hit a record $1.326 billion (+38% YoY) while Handsets fell 13% on memory constraints. CEO Cristiano Amon declared that "a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.""
Qualcomm received an upgrade to Outperform with a raised price target to $225 from $140. The upgrade reflects a view that Qualcomm’s role is moving from smartphone chip supply toward broader AI infrastructure participation, with the market undervaluing that transition. The case centers on Arm-based AI inference trends as AI workloads shift from GPU-dominated training toward inference, increasing the relevance of Arm-based CPUs and accelerators. The valuation is described as relatively low within semiconductors, and the June 24 Investor Day is cited as a catalyst for more detail on the data center roadmap. Qualcomm reported Q2 FY2026 revenue of $10.599 billion, non-GAAP EPS of $2.65, record automotive revenue, and declining handsets, while authorizing a $20 billion buyback and continuing its dividend.
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