HSBC Raises Qualcomm Price Target to $155

HSBC analyst Frank Lee raised the price target on Qualcomm (NASDAQ: QCOM) to $155.00 (from $150.00) while maintaining a Hold rating.

“Qualcomm has been looking to change its AI narrative since its Oct 25 announcement to enter the AI datacentre racks market.

However, there has been lack of meaningful supply chain feedback on product specs, roadmap, and customer pipeline to quantify the revenue opportunity.

Management also announced another AI narrative in terms of its custom silicon engagement with a hyperscaler customer by December 2026 which management is likely to elaborate more on its 24 June investor day.

However, we believe it remains too early to assess upside opportunity from custom silicon.

It is also unclear if the custom silicon engagement is an extension of an existing Alphawave project post its recent acquisition or a proprietary Qualcomm custom silicon chip enhanced by Alphawave IP.

We cut our FY26/FY27 EPS estimate by 5%/9% to reflect the handset weakness.

Our FY26 EPS estimates remain 5% below consensus but we expect the post-result consensus EPS to revise down after incorporating the weaker 3Q outlook.

We derive our revised rounded TP of USD155.00 by applying a next twelve month (NTM) target PE multiple of 15.9x to our NTM EPS of USD9.76. Our TP implies c1% downside and we retain our Hold rating.”

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