BofA lifts Qualcomm’s price target citing long-term AI growth potential despite maintaining an Underperform rating.
Bank of America raised its price target for Qualcomm (QCOM) to $195 from $165, rolling forward its valuation to 2028 estimates. The firm maintained an Underperform rating, citing intense competition in the AI market as Qualcomm expands beyond handsets into edge computing, auto/IoT, and data centers.
The update precedes Qualcomm’s investor day on June 24, where the company is expected to outline its strategy in AI-driven markets. Qualcomm is also in advanced talks to acquire AI infrastructure firm Modular Inc for approximately $4 billion, potentially accelerating its AI platform ambitions.
Qualcomm’s shift toward AI and diversification from smartphones comes as it faces pressure from established players in the sector. The company’s foundational wireless technologies, including 5G, remain core to its growth strategy.