TLDR
- Daiwa Securities upgraded Qualcomm from Neutral to Outperform with a $225 price target
- QCOM rose 6% Friday morning, up 5.6% in pre-market after closing Thursday at $202.50
- The stock has gained over 60% in the past 30 days
- Qualcomm slightly beat Q2 EPS of $2.65 vs. the $2.56 estimate; revenue was down 3.5% year-over-year
- The board approved a $20 billion share buyback; street consensus rating remains a Hold at $176.54
Qualcomm stock jumped around 6% Friday morning after Daiwa Securities upgraded the chipmaker from Neutral to Outperform, setting a price target of $225. That target implies roughly 11% upside from current levels.
The stock closed Thursday at $202.50 and was already up 5.6% before the opening bell. Over the past 30 days, QCOM has gained more than 60%.
Daiwa analyst Louis Miscioscia drove the call, pointing to Qualcomm’s revenue growth prospects and what he sees as a modest valuation at current levels.
His report raised the question of whether Qualcomm could be the next semiconductor name to see a price-to-earnings ratio reset, drawing a comparison to Arm Holdings.
Miscioscia pointed to an upcoming investor day as a key catalyst, where management is expected to outline opportunities in data center CPUs, physical computing, and edge AI.
Q2 Earnings: A Mixed Picture
Qualcomm reported Q2 earnings per share of $2.65, beating the consensus estimate of $2.56 by $0.09. Revenue came in at $10.60 billion, roughly in line with expectations.
However, revenue was down 3.5% compared to the same period last year, when EPS was $2.85. Q3 guidance came in at $2.10–$2.30 EPS, which fell below what analysts had expected.
Despite the softer guidance, Miscioscia said the focus should be on the company’s longer-term potential rather than near-term numbers.
Qualcomm’s board also approved a $20 billion share repurchase plan in March, covering up to 14.5% of outstanding stock.
Wall Street Is Divided
Not everyone is as bullish. The street consensus on QCOM remains a Hold, with an average price target of $176.54 — well below where the stock is trading now.
Bank of America has an Underperform rating with a $145 target. Morgan Stanley carries an Underweight rating at $146. Susquehanna rates it Neutral at $160.
On the other side, TD Cowen lifted its target to $200 with a Buy rating on April 30th. In total, nine analysts rate it Buy, sixteen say Hold, and three say Sell.
The mixed picture extends to the technical side too, with overbought readings flagged as a near-term risk after the 30-day surge.
Adding to the cautious tone, CEO Cristiano Amon sold 10,000 shares on May 4th at an average price of $180.00, a transaction worth $1.8 million. The sale was executed under a pre-arranged Rule 10b5-1 plan.
EVP Heather Ace also sold 3,200 shares at $177.82 on the same date. Total insider sales over the past 90 days amount to 19,177 shares valued at roughly $3.18 million.
Qualcomm has a market cap of $213.70 billion, a P/E ratio of 22.04, and a beta of 1.49. Its 50-day moving average sits at $138.77, well below the current price.
The 52-week range runs from $121.99 to $223.66, meaning the stock is trading near the top of its annual range.
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