Qualcomm stock gets Buy rating reiterated by Rosenblatt on HUMAIN deal

Investing.com - Rosenblatt has reiterated a Buy rating and $225.00 price target on Qualcomm (NASDAQ:QCOM) following the company’s announcement of a 200MW deployment with HUMAIN. The news comes as semiconductor companies increasingly focus on AI capabilities, with AMD (NASDAQ:AMD) showing particularly strong momentum, having achieved a remarkable 141% price return over the past six months.

The research firm views this development as positive for Qualcomm shares in the longer term, noting that it aligns with management’s strategy to diversify end markets while growing smartphone market share.

The HUMAIN deployment represents a significant step into a new growth vector for Qualcomm in AI inference data centers, following a similar 500MW deployment worth $10 billion between AMD and HUMAIN announced in May.

While specific revenue details were not provided, Rosenblatt estimates Qualcomm’s deployment with HUMAIN could generate approximately $2 billion, with deployment expected to begin in 2026.

The inference stage AI market is projected to reach over $250 billion by 2030 with annual growth of approximately 20%, potentially allowing Qualcomm to generate significant AI inference-related revenue in the long term.

In other recent news, AMD has completed the divestiture of ZT Systems’ data center infrastructure manufacturing business to Sanmina. This transaction establishes Sanmina as a preferred manufacturing partner for AMD’s cloud rack and cluster-scale AI solutions. AMD retains the design expertise from ZT Systems to support faster deployment of AI systems for its cloud customers. UBS has reiterated its Buy rating on AMD, maintaining a price target of $265, citing potential upside for the company’s third-quarter results. UBS expects AMD’s Q3 performance to approach the high end of its $9 billion revenue guidance, driven by strength in server and client CPU segments. Additionally, IBM has successfully run a key quantum computing algorithm on standard AMD chips, marking a significant step toward making quantum computers commercially viable. These developments highlight AMD’s strategic moves in the data center and AI infrastructure markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.