Investing.com -- Qualcomm Inc. (NASDAQ: QCOM) shares rose 6% Friday morning after Daiwa Securities analyst Louis Miscioscia upgraded the chipmaker from Neutral to Outperform with a price target of $225.

The upgrade comes as shares closed Thursday at $202.50 and were up 5.6% in pre-market trading. The stock has gained over 60% in the past 30 days.

Daiwa’s report questioned whether Qualcomm could be the next semiconductor company to see a price-to-earnings ratio reset, drawing comparisons to Arm Holdings. The analyst noted that the company’s upcoming investor day will review opportunities in data center CPUs, physical computing, and edge AI.

While Qualcomm’s third quarter fiscal 2026 guidance fell below expectations, Miscioscia said the focus should be on the company’s future potential. The analyst cited Qualcomm’s revenue growth prospects and modest valuation as reasons for the upgrade to Outperform with the $225 price target.