Qualcomm (NASDAQ: QCOM) surprised everyone this week, disclosing new plans to enter the data center market and forging a new $1 billion partnership with Saudi Arabia’s artificial intelligence (AI) company Humain.
Together with the announcement of AI200 and AI250 chips designed for enterprise customers, the news of the deal sent the stock jumping more than 10% on Monday to a new 52-week high.
Although the price has somewhat retraced since, QCOM shares are still up 8.39% on the five-day chart, trading at $180.29 at press time.
Analysts more upbeat on QCOM stock
Wall Street was quick to respond, with multiple analysts readjusting their outlooks for the chipmaker.
Already on Monday, October 27, UBS’s Timothy Arcuri raised his QCOM stock price target from $165 to $175 (-3.01%), albeit while reiterating his “Hold” rating.
On the same day, Bernstein’s Stacy Rasgon and J.P. Morgan’s Samik Chatterjee reiterated their own “Buy” ratings but withheld any specific figures, noting that the company’s latest data center aspirations and the 200-megawatt Humain partnership mark a meaningful step forward.
On Tuesday, October 28, Citi’s Christopher Danely upped his forecast from $170 to $175 (-3.01%), again rating it a “Hold”, while Bank of America’s Tal Liani doubled down on his “Buy” take and his target price of $200 (+10.85%).
Qualcomm stock price target
As of the time of writing, Qualcomm holds a “Moderate Buy” consensus rating based on a total of 17 evaluations aggregated on the market analysis platform TipRanks over the past three months.
With 10 “Buys”, six “Holds,” and just one “Sell” rating, the average QCOM price target for the next 12 months sits at $185, implying a 1.93% downside from the current levels.
Ultimately, Qualcomm’s latest moves signal a clear intention to diversify its operations and compete more directly in the lucrative AI datacenter space.
As a result, several analysts have injected fresh enthusiasm into the market, although the modest downside potential for the next year still suggests some execution risks remain.
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