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Daiwa upgraded Qualcomm (QCOM) stock to Outperform from Neutral with an $85 price target increase to $225, citing a strategic shift toward AI infrastructure and data center silicon.
Qualcomm’s 22x P/E discount to NVIDIA (NVDA) and Advanced Micro Devices (AMD) could compress if its data center pivot gains traction, making it a credible AI story worth monitoring ahead of the June investor day.
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Daiwa upgraded Qualcomm (NASDAQ:QCOM) to Outperform from Neutral on May 8, 2026, raising its price target to $225 from $140. Analyst Louis Miscioscia argues that Qualcomm's identity is shifting from smartphone chip supplier to broader AI infrastructure participant, and that the market is undervaluing the transition.
The $85 price target raised by a single firm ranks among the most aggressive revisions of the year. For prudent investors, the analyst upgrade puts Qualcomm stock back on the watch list as a credible data center AI story, even as the legacy handset franchise wobbles.
Miscioscia asserts that Qualcomm could ride the same Arm-based AI inference trends fueling enthusiasm for Arm Holdings (NASDAQ:ARM) and Intel (NASDAQ:INTC). As AI workloads migrate from NVIDIA (NASDAQ:NVDA) GPU-dominated training toward inference, Arm-based CPUs and accelerators gain relevance.
The bank also cites Qualcomm's relatively low valuation within semiconductors and flags the June 24 Investor Day as a catalyst for further detail on the data center roadmap. Securing additional hyperscaler design wins would be the proof point bulls need.
Qualcomm reported Q2 FY2026 revenue of $10.599 billion, down 3% year over year (YoY), with non-GAAP EPS of $2.65 beating consensus. Automotive hit a record $1.326 billion (+38% YoY) while Handsets fell 13% on memory constraints.
CEO Cristiano Amon declared that "a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year." The company also authorized a $20 billion buyback and continues paying a $0.89 quarterly dividend.
QCOM stock trades near $216.63, up 19% year to date (YTD), at a P/E ratio of 22x. NVIDIA carries a P/E ratio of 43x, and Advanced Micro Devices (NASDAQ:AMD) stock has rallied 105% YTD as the AI bid broadens.
The valuation gap drives the call. If Qualcomm's data center pivot gains traction, the historic discount to NVIDIA and AMD could compress, echoing this year's chip-stock revaluations covered in our recent Qualcomm versus Broadcom AI analysis.
The bull case for Qualcomm stock rests on a multi-vector pivot in which automotive, IoT, and data center silicon all contribute alongside handsets. The Alphawave Semi acquisition and the hyperscaler engagement give the thesis tangible mile markers.
The bear case is unchanged: handsets still drive most of the economics, and server silicon faces fierce competition from NVIDIA, AMD, and Intel, plus hyperscaler in-house programs. The June investor day is the next clean tell on whether management can quantify the data center opportunity.
For prudent investors, the price target raised by Daiwa warrants a closer look at Qualcomm as an AI infrastructure participant rather than a pure mobile name. Moderate position sizing remains sensible while the data center thesis is early and execution risks are real.
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