UBS Raises Qualcomm Price Target to $170

UBS analyst Timothy Arcuri raised the price target on Qualcomm (NASDAQ: QCOM) to $170.00 (from $150.00) while maintaining a Neutral rating.

“Consistent w/our preview, QCOM guided June below due to ongoing memory-related demand destruction in the Android smartphone market.

This should cease to be a headwind in CQ3, but we still don’t see China Android shifting to much of a tailwind until the market works through the full effect of higher memory prices.

QCOM remains broadly a company in transition with AAPL still a ~$4-5B/yr revenue headwind from the C2026 baseline, but autos and IoT each add ~$1-1.5B/yr (and agentic AI adding PC tailwinds) and data center offers a vast opportunity set but also a crowded market.

To this end, QCOM disclosed a new custom silicon program shipping to a major hyperscaler by CYE26.

This drove the stock from -5% aftermarket to peaking at +17%, adding ~ $35B in market cap for a program that investors know next to nothing about.

At QCOM’s ~14x P/E and high 20%s OpM for its chip business, this would have to be a ~ $10B revenue program (multiples larger than any program other than TPU and Trainium) for us to rationalize this move.

So we are really still unsure what QCOM’s niche will be in this market, but this move shows that it doesn’t take much to stir animal spirits given the data center capex pool.

Net, we arrive at about the same place with our CY27 revenue estimate of $45B and EPS of $11.28 with our PT moving from $150 to $170.”

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