Qualcomm Outperforms Broader Market Slump: Analysts Eye Data Center Growth Ahead of Q4
Key takeaways
- Qualcomm’s stock gains are driven by data‑center optimism, but margin and earnings risks temper enthusiasm.
- QCOM shares up 2.65% to $168.74
- BofA price target cut to $180
- Rosenblatt price target cut to $235
What happened
Qualcomm Inc (NASDAQ: QCOM) shares rose 2.65% to $168.74 on Monday, outperforming the broader market as investors focused on the company’s data‑center prospects despite margin and fiscal 2027 earnings risks.
Why it matters
The rally reflects optimism that Qualcomm’s data‑center initiatives—particularly two hyperscaler ASIC programs slated to generate revenue in the December quarter—will offset pressure from higher input costs and lower‑margin mobile pricing. Analysts remain upbeat but have lowered price targets, signaling that while…
Short-term and longer-term
Short-term. Short‑term traders should watch QCOM’s price action around the $170 level, as a break could signal a shift in the data‑center narrative.
Longer-term. Over the next few months, investors should assess how Qualcomm’s data‑center revenue unfolds against the backdrop of rising manufacturing costs and lower‑margin custom ASIC sales.