Qualcomm: Investor Day Preview: late entrant in hyper crowded AI market

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Qualcomm: Investor Day Preview: late entrant in hyper crowded AI market

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Qualcomm

Investor Day Preview: late entrant in hyper

crowded AI market

Reiterate Rating: UNDERPERFORM | PO: 195.00 USD | Price: 221.90 USD

AI provides diversification, but also adds competition 22 June 2026

QCOM’s Investor Day on Wednesday (June 24th) is expected to provide more detail on Equity

QCOM’s data center opportunity as they diversify away from handsets toward a broader

AI compute platform spanning edge, auto/IoT, and data center. We expect a near-term

Key Changes

($2-$5bn by FY27/28E) and a longer-term addressable opportunity across agentic server

CPU, decode-specific (Groq-like) AI accelerators, and a wider opportunity in edge/ (US$) Previous Current

physical AI. The goal of course is to showcase that by the end of the decade, QCOM Price Obj. 165.00 195.00

could derive the majority of its sales from non-smartphone segments including data-

center/AI, autos and edge AI/IoT. We raise our PO to $195 from $165 (rolling forward to VivekResearchAryaAnalyst

CY28 estimates), but maintain Underperform since we believe QCOM is re-entering (has BofAS

vivek.arya@bofa.com

attempted data-center entry multiple times prior) a fast-growing but hyper competitive

Duksan Jang

AI market full of large incumbents including (NVDA, AVGO, AMD, MRVL, Cerebras, ARM Research Analyst

AGI CPU, other custom chip options incl Amazon Graviton, Google Axion etc. BofAS

duksan.jang@bofa.com

Recent stock strength already embeds medium DC success MichaelResearch ManiAnalyst

Our scenario analysis shows ~$10bn CY28E DC/AI sales at ~20% EBT margins already BofAS

michael.mani@bofa.com

priced in based on current share price: We apply QCOM’s 13x historical multiple

Liam Pharr