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Market Analysis

Qualcomm stock target increased by $50 on improved revenue visibility
Amos · 103 Views

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On Friday, JPMorgan updated its outlook on Qualcomm (NASDAQ:QCOM), increasing its price target to $235 from the previous target of $185, while reaffirming its Overweight rating on the stock. The firm highlighted several factors that could drive sustained double-digit revenue growth for Qualcomm into fiscal year 2025 (FY25) and beyond.

The firm's positive stance is based on the anticipated ramp-up in artificial intelligence (AI) smartphones and PCs, which is expected to lead to significant content increases. Additionally, the robust growth in the automotive sector is seen as a key driver. These elements are considered secular drivers of growth, which could be further augmented by a potential cyclical recovery in the smartphone and PC markets.

According to JPMorgan's extended model, which now reaches out to fiscal year 2027 (FY27), Qualcomm is projected to achieve consistent double-digit revenue growth, excluding its business with Apple (NASDAQ:AAPL).

The forecast includes low double-digit revenue growth in handsets (excluding Apple), approximately 30% compound annual growth rate (CAGR) in automotive, and over 26% CAGR in the Internet of Things (IoT) sector. The projections are bolstered by an expected increase in PC-related revenue, which is estimated to grow to $3.7 billion in FY27E from $300 million in FY24E.

JPMorgan anticipates that these drivers will provide clear visibility into the company’s revenue and earnings growth (excluding Apple), which could lead to a re-rating of Qualcomm shares. The firm suggests that the historical trading average of around 15 times could potentially increase to approximately 20 times.

Applying this 20 times multiple to the company's earnings power, which JPMorgan estimates to be $13, supports the new December 2025 price target of $235.

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