Piper Sandler Just Raised Its Price Target on Qualcomm (QCOM) Stock

Core Viewpoint - Qualcomm reported strong fiscal Q3 results but provided weak guidance for the upcoming December quarter, leading to a significant drop in its stock price despite analysts maintaining a positive outlook due to AI developments [1][3]. Financial Performance - Qualcomm's adjusted EPS for Q3 was $2.33, surpassing the expected $2.25 per share [1]. - The company's revenue reached $9.39 billion, exceeding the consensus estimate of $9.22 billion [1]. - Net income for the quarter was $2.13 billion, or $1.88 per share, compared to $1.8 billion, or $1.60 per share, in the same quarter last year [2]. Strategic Developments - CEO Cristiano Amon emphasized the successful execution of Qualcomm's growth and diversification strategy, particularly highlighting the launch of Snapdragon X Series solutions for personal computers [2]. - These new semiconductors are expected to provide superior performance, power efficiency, and personalized AI experiences [2]. Market Outlook - Despite the fiscal Q3 beat, Qualcomm's stock fell over 9% due to management's guidance of mid-single-digit growth for the December quarter, which disappointed investors expecting double-digit growth [3]. - Analysts from Piper Sandler noted that Qualcomm's Q3 results and Q4 guidance exceeded expectations, driven by strength in Android and upcoming growth with modem-only customers [3]. Analyst Sentiment - Piper Sandler raised its price target for Qualcomm from $185 to $205 per share, maintaining an "overweight" rating, while the consensus view is a moderate buy with an average price target of $207.60 per share [4]. - Analysts believe that over half of all PCs will be AI-capable by 2027, positioning Qualcomm favorably in the long term [4].