Analyst Tal Liani of Bank of America Securities reiterated a Buy rating on Qualcomm, retaining the price target of $200.00.
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Tal Liani has given his Buy rating due to a combination of factors that highlight Qualcomm’s strategic expansion and market potential. Qualcomm’s recent announcement of its AI accelerator chips, AI200 and AI250, marks a significant move into the data center market, diversifying its revenue streams away from the low-growth smartphone sector. This expansion is timely, as the AI accelerator market is projected to grow substantially, potentially reaching $114 billion by 2030. Qualcomm’s entry into this market, despite being in its early stages, positions it to capture a portion of this growth, which could significantly boost its revenues.
Additionally, Qualcomm’s current stock valuation, trading at a lower multiple compared to its data center peers, presents an attractive investment opportunity. The company’s strategic acquisitions, such as Alphawave, enhance its technological capabilities, supporting its diversification into high-speed connectivity and power-efficient processing. Despite challenges like high exposure to Apple’s market fluctuations and potential risks with Samsung, Qualcomm’s potential for market share gains and total addressable market expansion underpins the Buy rating, with a price objective of $200.
According to TipRanks, Liani is a 5-star analyst with an average return of 9.2% and a 58.35% success rate. Liani covers the Technology sector, focusing on stocks such as Ciena, CrowdStrike Holdings, and Palo Alto Networks.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $214.00 price target.