Qualcomm (QCOM) PT Raised to $190 at Susquehanna

Susquehanna analyst Christopher Rolland raised the price target on Qualcomm (NASDAQ: QCOM) to $190.00 (from $160.00) while maintaining a Neutral rating.

The analyst commented: "On Tuesday, June 24, Qualcomm hosted its 2026 Investor Day in New York. These were the main highlights of the day: 1) Qualcomm now sees an expanded TAM of ~$1.7T by 2030 (vs. ~$900B previously), inclusive of a $1T+ TAM in Data Center; 2) in total, the company is now targeting ~$40B of non-handset revenue in FY29, significantly higher than their prior target of ~$22B; 3) this new target is inclusive of $15B+ of DC revenue in FY29 (targeting >5% market share over the next five to seven years), driven by rapid growth across accelerators, CPUs, custom silicon and networking; 4) in the interim, Qualcomm expects its DC business will reach ~$5B in FY27, driven by the ramp of two custom silicon hyperscaler programs; 5) for its handset business, the company reiterated its prior CAGR target of ~5% for Android; 6) in aggregate, the company believes it can reach EPS of >$18 in FY29; 7) turning to the roadmap, the company introduced its first Oryon server-class CPU, the Dragonfly C1000, which will address each of the three major CPU applications (agentic, general-purpose, XPU head node) within the ~$200B CPU market; 8) the chip will launch in 2028 and feature Meta as an anchor customer as part of its “multi-generational” CPU collaboration; 9) additionally, the company expects to ramp its networking portfolio with an initial hyperscale customer in the coming quarters; 10) Qualcomm also introduced a multi-year connectivity roadmap spanning optical modules and electrical cables (~$65B FY29 TAM); 11) the company also announced it had won two hyperscaler custom silicon engagements that will begin providing
“meaningful revenue” at the end of 2026 (~$115B FY29 TAM for custom silicon); 12) Qualcomm introduced a new chiplet architecture called High Bandwidth Compute (HBC), which it believes will significantly improve decode performance per watt by placing the compute die underneath the DRAM stack; 13) its AI250 rack, which will be introduced in mid-2027, will be its first product featuring this new HBC technology; 14) in addition, the company previewed its next-gen AI300 rack (to be introduced in 2028), which will feature both UAL and ESUN networking, as well as optical and copper scale-out technology; and 15) the company believes the FY29 accelerator TAM will reach ~$680B. We reiterate our Neutral rating as we continue to worry about the headwinds in the mobile market, but raise our price target from $160 to $190 (~41x C2026E EV/NOPAT)."

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