Prediction: Qualcomm Could Be on the Verge of a Major Transformation

The 24/7 Wall St. price target for Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) is $218.04 over the next 12 months. From a reference price of $184.1, that works out to 18.44% upside, and our model rates the stock a buy.

Management targets $40 billion in non-handset revenue by fiscal 2029, up from $22 billion. Non-handset growth is expected to speed up from 24% in fiscal 2026 to greater than 60% in fiscal 2027. If Qualcomm delivers, the business will look very different by decade’s end.

Qualcomm Has Pulled Back Hard From Its June Peak

The stock is down 6.01% over the past week. It is still up 14.12% over the past month and 10.67% year to date. Qualcomm underperformed its competitors on Monday. Shares trade about 28.5% below their 52-week high of $257.56 and about 52.3% above their low of $120.88.

In fiscal Q3, revenue came in at $9.947 billion, ahead of the $9.672 billion estimate. Non-GAAP EPS of $2.21 narrowly missed expectations. Handset revenue fell 20%, while automotive revenue rose 61% to $1.588 billion.

Why Bulls See Data Center Revenue Rewriting the Story

Two custom silicon deals with hyperscalers begin revenue in the December quarter. Management targets $5 billion in fiscal 2027 and $15 billion in fiscal 2029 for data center.

The AI expansion reaches well beyond the accelerator makers, and we featured seven of the less-obvious infrastructure suppliers in a free report you can grab here.

In automotive, Qualcomm raised its annualized revenue target to about $7 billion and won the lead compute supplier role for BMW’s next-generation ADAS and digital cockpit. The most optimistic fiscal 2027 EPS estimate is $12.24. Our bull case of $237.62 implies about 29% upside.

Apple’s Exit and Margin Pressure Could Stall the Rerating

Management expects Apple product revenue to fall about 50% from September to December. Over the past 30 days, analysts made 27 downward revisions to fiscal 2027 estimates.

Consensus EPS for fiscal 2027 now stands at $10.1772, below the $10.4834 expected for fiscal 2026. Custom data center chips could cut QCT gross margin by 1.5% to 2%.

Qualcomm is raising prices by double-digit amounts to offset higher costs. In the bear case of $185.27, the stock stays about flat over 12 months.

Qualcomm Trades Below Its Custom Silicon Rivals

Broadcom (NASDAQ:AVGO) leads the hyperscaler custom silicon market that Qualcomm is entering. It trades at nearly the same forward multiple while growing revenue 85.5%.

Marvell (NASDAQ:MRVL) shows what investors pay once a custom silicon ramp is proven: a forward multiple of 62x.

Texas Instruments (NASDAQ:TXN) is a useful comparison for automotive and industrial chips, and it trades at 28x. Against this group, the 24/7 Wall St. price target looks conservative.

Qualcomm’s Transformation Tips the Balance Toward Upside

The 24/7 Wall St. price target is $218.04, with a buy rating and 90% confidence. Qualcomm trades at a peer-level multiple while data center revenue is only now coming.

Upside hinges on hyperscaler shipments starting on schedule in December and price increases restoring margins. On the downside, Android weakness could compound the Apple decline.

These year-end targets assume Qualcomm keeps executing its current strategy.

The biggest swing factor is data center execution. Hitting the $15 billion fiscal 2029 target would push results above this path, and a delayed accelerator launch would pull them below it.

Contact [email protected] for any questions or corrections.