Wolfe Research Reiterates Peerperform Rating on Qualcomm (QCOM)

Wolfe Research analyst Chris Caso reiterated a Peerperform rating on Qualcomm (NASDAQ: QCOM).

The analyst comments "Net. QCOM today announced the products that mark their entry to the datacenter AI race, with two rack scale solutions available in 2026 and 2027. In addition, the company made an announcement with HUMAIN (the Saudi sovereign AI initiative) for 200 MW of capacity in 2026. This quantifies the letter of intent that was signed with HUMAIN in May 2025 [link], and provides clarity on the product that QCOM will deliver to the venture. As a point of reference, AMD’s announcement with OpenAI amounted to what we believe to be $15bn / GW. However, the specs that were released for the QCOM product appear to be much less than current products from NVDA, AMD and AVGO (LPDDR memory rather than HBM, and PCIe for scale up rather than Ethernet or NVLink). Based on those specs, and the fact this is a first-generation product, we think it’s reasonable to assume that QCOM would receive far less per GW as compared to AMD. Without details about the power consumption and performance for the product as well as pricing, it’s difficult to estimate the value of the deal – but we think perhaps on the order of $1bn is a reasonable guess. Since the customer is a sovereign customer rather than an established cloud provider, investors are likely to view this as a less compelling endorsement of QCOM’s technology. Nonetheless, QCOM does have a customer, they do now have a product and they are likely to have some revenue. To prove that QCOM indeed has a seat at the table however, more details will be required with regard to performance, QCOM’s roadmap, and the potential for customers beyond HUMAIN."

For an analyst ratings summary and ratings history on Qualcomm click here. For more ratings news on Qualcomm click here.

Shares of Qualcomm closed at $168.94 yesterday.

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