DZ Bank Upgrades Qualcomm to Buy with $265 Target

DZ Bank upgraded Qualcomm (NASDAQ:QCOM) from Hold to Buy, setting a price target of $265. The upgrade on June 26 followed a Reuters report on June 24 that Qualcomm expects its data center business to generate $15 billion in sales by 2029.

Rating Change

• Previous Rating: Hold
• New Rating: Buy
• Price Target: $265

Analyst Rationale

The DZ Bank analyst sees Qualcomm's pivot to data centers as a key growth driver, especially with rising demand for AI and cloud computing chips. The company's $15 billion sales target for 2029 bolsters confidence in its ability to diversify beyond smartphones.

Context

The upgrade comes as Qualcomm competes with NVIDIA and AMD in the data center space. The stock is also among the top 10 dividend stocks for passive income, appealing to income-focused investors. Qualcomm has not yet commented on the upgrade.

Conclusion

DZ Bank's upgrade reflects growing optimism about Qualcomm's data center strategy, but investors should watch competitive pressures and the company's ability to meet its ambitious targets.