Morgan Stanley raises Qualcomm price target to $231, business diversification faster than expected

Odaily reported that Morgan Stanley released a research report stating that Qualcomm's data center business outlook presented on Investor Day was more optimistic than expected. Management explicitly provided guidance of $5 billion in AI-related revenue for fiscal 2027, which is at least double the market's expectations, indicating that the company has joined the ranks of AI beneficiaries. The investment bank believes that driven by data center opportunities, Qualcomm's business diversification is progressing faster than anticipated, with management targeting to capture over 5% share of the $1 trillion total addressable market for data centers within 5 to 7 years. Morgan Stanley raised its rating on Qualcomm from Underweight to Equal-weight, increased its price target from $146 to $231, raised its fiscal 2027 revenue forecast from $41 billion to $46 billion, and adjusted its earnings per share forecast from $9.84 to $10.45.