Such as Qualcomm (NASDAQ: QCom) The stock is riding the artificial intelligence (AI) hype, Cantor Fitzgerald analyst CJ Muse raised his 12-month price target for the chipmaker.
The Wall Street analyst raised his price target on Qualcomm stock to $200 from $150, representing a 33% increase, according to data analyzed by Finebold on June 22. Muse also reiterated a “neutral” rating on 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 estimates these earnings at about 15 times and discounts them again for a year to arrive at their fair value Qcom shares.
However, he remains “very skeptical” that Qualcomm’s CPU will succeed beyond the server master node. Muse expects the company’s XPU and custom ASIC efforts will take “a significant amount of time to achieve real, sustained success,” supporting a cautious rating despite the higher target.
Over the next 12 months, the analyst expected Qualcomm stock will trade between $165 and $300, with the low end pegged to 2027 earnings and the high end reflecting a more bullish future scenario.
Earlier this month, Wells Fargo & Co. (NYSE: WFC) raised its price target on Qualcomm stock from $160 to $230 and maintained an “equal weight” rating, as did Finbold. I mentioned.
Qualcomm stock price forecast
Year-to-date (YTD), Qualcomm stock is up more than 30%, closing at about $222.8 on Thursday and trading above $226 on Monday. As such, the company’s market capitalization has risen to approximately $238.32 billion as of the time of writing this report.
A higher price target for Qualcomm shares could help fuel the near-term upside, although the new $200 level is still below the current price. Furthermore, demand for AI data centers remains the key driver that could determine how well QCOM stock runs.
