As Qualcomm, Inc. (NASDAQ: QCOM) stock rides the Artificial Intelligence (AI) hype, Cantor Fitzgerald analyst C.J. Muse has raised his 12-month price target on the chipmaker.
The Wall Street analyst lifted his Qualcomm stock price target to $200 from $150, representing a 33% increase, according to data analyzed by Finbold on June 22. Muse further reiterated a “Neutral” rating for Qualcomm stock.
Muse’s $200 target for Qualcomm Inc stock is based on a model that assumes $10 billion in data center revenue and FY31 earnings per share of $20. He values such earnings at roughly 15 times and discounts it back a year to reach fair value for QCOM stock.
However, he remains “highly skeptical” of Qualcomm’s CPU success beyond the server Head Node. Muse expects the company’s XPU and custom ASIC efforts to take “a great deal of time for real and sustained success,” underpinning the cautious rating despite the higher target.
Over the next 12 months, the analyst expects the Qualcomm stock to trade between $165 and $300, with the low end anchored to 2027 earnings and the high end reflecting a more bullish forward scenario.
Earlier this month, Wells Fargo & Co. (NYSE: WFC) raised the Qualcomm stock price target from $160 to $230 and maintained an ‘Equal Weight’ rating, as Finbold reported.
Qualcomm stock price outlook
Year-to-date (YTD), Qualcomm stock has rallied more than 30%, having closed at about $222.8 on Thursday and trading above $226 on Monday. As such, the company’s market capitalization has surged to approximately $238.32 billion as of the time of reporting.
The raised price target for Qualcomm stock could help fuel a near-term rally, though the new $200 level still sits below the current price. Moreover, the demand for AI data centers remains the key driver that could determine how far QCOM stock runs.
