Analyst Christopher Danely from Citi maintained a Hold rating on Qualcomm and increased the price target to $175.00 from $170.00.
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Christopher Danely has given his Hold rating due to a combination of factors related to Qualcomm’s recent announcements and market positioning. Qualcomm has entered the AI market with new products and a significant deal with Saudi Arabia’s AI enterprise HUMAIN, which could potentially bring in $1 billion in revenue and add $0.25 to its EPS. Despite this positive development, the stock’s 15% rise is attributed to a short squeeze rather than sustained investor confidence.
Danely expresses skepticism about Qualcomm’s success in the AI sector, noting that the company is several years behind key competitors like AMD and NVDA. Additionally, Qualcomm’s approach does not leverage HBM DRAM, which is crucial in the AI race focused on performance. While revenue and EPS estimates have been raised, Danely maintains a Neutral stance, adjusting the price target slightly upward to reflect broader market valuations.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $175.00 price target.