Qualcomm’s $5 billion FY27 data center revenue guidance prompts an upgrade, though long-term AI roadmap concerns persist.
Morgan Stanley raised its Qualcomm (QCOM) price target to $231 from $146 and upgraded the stock to Equal-weight from Underweight. The firm cited QCOM’s $5 billion FY27 data center revenue guidance as a key driver, positioning the company as a potential winner in the sector.
While the $15 billion FY29 target appears ambitious, the nearer-term $5 billion projection is seen as achievable. However, Morgan Stanley remains cautious about Qualcomm’s AI product roadmap, noting the company trails competitors like Nvidia and Cerebras in customer validation and productization.
Qualcomm’s accelerator revenue is expected to ramp in the second half of fiscal 2027, but the firm awaits further proof before adopting a more bullish stance.