Qualcomm (QCOM) shares are seeing new momentum on Thursday, increasing 14% in early trading after the company delivered a strong earnings report that beat Wall Street expectations. Evercore ISI analyst Mark Lipacis responded today by raising his price target for the stock to $179. This move reflects a growing belief that the firm is no longer just a smartphone chip maker, but a leader in the next phase of the artificial intelligence boom.
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Mark Lipacis Describes a “CPU Renaissance” Roadmap
The most striking part of today’s report is the theory that the world is entering a “CPU Renaissance.” Lipacis argues that as the industry moves from training AI models to running them, the demand for power-efficient processors will explode. He notes that the rise of “Agentic AI” will likely tighten the ratio of CPUs to GPUs in data centers and devices.
This shift plays directly into the strengths of the company, which specializes in high-performance processing that does not drain massive amounts of electricity.
Automotive Sales Fuel a Record $1.3 Billion Pillar
Qualcomm is successfully moving its business away from a heavy reliance on the handset market. In the most recent quarter, automotive revenue hit a record $1.3 billion, which is a 38% jump compared to the previous year.
Moreover, the Snapdragon Digital Chassis is now used in over a million cars for advanced driving features. This diversification helped the firm report total revenue of $10.6 billion, even as global smartphone sales remain somewhat slow.
QCOM’s Inference Demand Shifts the Compute Landscape
Financial results for the quarter were strong across the board, with Qualcomm reporting $2.65 in earnings per share. This surpassed the expected $2.56 and provided a solid floor for the stock price. Lipacis maintained his rating but noted that the transition from AI training to “inference” is a structural win for the firm. With $1.7 billion in IoT revenue and a growing presence in the AI PC market, the company is proving it can win in multiple categories at once.
Is Qualcomm a Good Stock to Buy?
According to TipRanks, Qualcomm stock (QCOM) has received a Hold consensus rating, with nine Buy, 18 Hold, and four Sell ratings assigned in the last three months. The average QCOM stock price target is $164.62, suggesting a downside risk of 7.15% from the current price level.
