Bank of America Raises Qualcomm Price Target to $195

Bank of America raised its price target on Qualcomm (NASDAQ:QCOM) from $165 to $195, while maintaining an "Underperform" rating ahead of the company's Investor Day on Wednesday, June 24. The revision reflects the bank rolling its valuation forward to calendar year (CY) 2028 estimates.

Rating Change

• Previous Price Target: $165
• New Price Target: $195
• Rating: Underperform

Analyst Rationale

Analysts at Bank of America attributed the adjustment to rolling their valuation forward to CY2028 estimates, applying a 15x price-to-earnings (P/E) multiple. The bank's underlying financial estimates remain unchanged, including projected AI revenue of approximately $2.5 billion in CY2028.

Context

The revision comes ahead of Qualcomm's Investor Day, where the company is expected to detail its data center plans. No other analysts have issued similar updates yet. Qualcomm's stock is currently trading near the new price target.

What to Make of It

Despite the price target increase, the maintained Underperform rating suggests Bank of America remains cautious on near-term growth prospects. Investors should watch the Investor Day for further clarity on the company's strategy.