Qualcomm Inc (NASDAQ: QCOM) unveiled a transformative long-term outlook at its Investor Day on October 24, 2023, raising its fiscal 2029 non-handset revenue target from $22 billion to $40 billion. This significant revision comes as the company positions itself to diversify beyond its traditional handset business, with a strong focus on data centers, automotive, and the Internet of Things (IoT). The company has already secured major customers, including Microsoft and Meta, confirming deployments of Qualcomm’s AI technology in their data centers.
Following the event, analysts responded positively, with Morgan Stanley upgrading Qualcomm’s stock from Underweight to Equal-weight and raising its price target from $146 to $231. JPMorgan reiterated its $265 target, while Benchmark set a new street high of $300, indicating a nearly 50% potential upside. However, investors should remain cautious as the handset market is projected to decline significantly, particularly with Apple shifting its chip production in-house by 2029. Additionally, the required investments to capitalize on the data center opportunity may impact margins in the short term.
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