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Investing.com - Piper Sandler raised its price target on Qualcomm (NASDAQ:QCOM) to $200 from $175 on Thursday, while maintaining an Overweight rating on the semiconductor company’s shares. This target aligns closely with InvestingPro data, which indicates Qualcomm is currently undervalued based on its Fair Value assessment, with analyst targets ranging from $140 to $225.
The research firm cited Qualcomm’s strong September quarter performance, which exceeded expectations by approximately $500 million. The company also provided December quarter guidance that was higher by a similar magnitude. This performance builds on Qualcomm’s impressive 15.8% revenue growth over the last twelve months, reaching $43.26 billion.
Piper Sandler noted that Qualcomm has successfully mitigated concerns about its largest customer through stronger traction within the Android ecosystem, particularly through higher content related to increased AI in computing cores.
The handset segment delivered a positive surprise, driven by expansion in the upper-tier category along with content and average selling price increases. Automotive and IoT segments also performed well, showing high single-digit sequential growth.
While Qualcomm is investing more in its operating model to address new markets like AI and data center opportunities, which may impact profitability, Piper Sandler remains positive as the company continues to find growth despite the departure of a large handset customer.
In other recent news, Qualcomm reported impressive financial results for the fourth quarter of fiscal 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $3.00, exceeding the forecast of $2.87. Additionally, Qualcomm’s revenue reached $11.27 billion, outperforming the anticipated $10.75 billion. In the realm of analyst evaluations, Baird adjusted its price target for Qualcomm to $200 from $216, maintaining an Outperform rating. Baird anticipates a transformation in Qualcomm’s business structure by 2028, suggesting a reduced reliance on handset revenue. Meanwhile, BofA Securities increased its price target for Qualcomm to $215 from $200, retaining a Buy rating. BofA highlighted Qualcomm’s robust performance in China and non-handset segments as key factors in its recent success. These developments reflect a dynamic period for Qualcomm, with significant implications for investors.
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