Qualcomm (QCOM) surged about 17% on Thursday after reporting better‑than‑expected Q1 earnings and signaling fresh momentum in AI and hyperscaler deals. The rally gained further fuel after Benchmark analyst Cody Acree lifted his price target to a street‑high $225, up from $200, while reiterating a Buy rating.
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The stock had already surged roughly 12% in after‑hours trading on Wednesday, even as the company issued a softer June‑quarter revenue guide. The five-star analyst said investors chose to look past the near‑term weakness and focus instead on two catalysts driving the company’s long‑term story.
New Hyperscaler Win Changes the Narrative
Acree highlighted Qualcomm’s newly disclosed custom silicon deal with a major hyperscaler, calling it a big win. Shipments are expected to begin later this year, and the analyst sees the partnership as strong validation of the company’s AI strategy.
He believes the deal could help shift how Wall Street values the company, from a smartphone cycle stock to a broader AI infrastructure and edge compute player. He noted the partnership boosts the chances that investors begin viewing Qualcomm through a wider AI lens.
China Smartphone Weakness May Be Bottoming
Acree also pointed to signs that the China Android slump may be stabilizing, easing one of the biggest headwinds for Qualcomm’s handset business. While the June outlook remains soft, he argued the weakness stems from temporary supply and cost issues in lower‑tier Android devices.
Is QCOM a Good Buy Now?
Turning to Wall Street, analysts have a Hold consensus rating on Qualcomm stock based on nine Buys, 18 Holds, and four Sells assigned in the past three months. Further, the average QCOM price target of $164.62 per share implies 9.08% downside potential.
