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

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