Qualcomm upgraded to Outperform from Neutral at Daiwa

Daiwa analyst Louis Miscioscia upgraded Qualcomm (QCOM) to Outperform from Neutral with a price target of $225, up from $140. Qualcomm’s Q2 results were mixed, with strong Auto and IoT growth offset by weaker-than-expected handset performance and softer Q3 guidance, but focus is increasingly shifting toward the company’s emerging data center AI CPU opportunity, which could position Qualcomm to benefit from the same Arm-based AI inference trends driving enthusiasm for Arm (ARM) and Intel (INTC), especially given Qualcomm’s relatively low valuation within semiconductors and the potential for further detail at its June investor day, the analyst tells investors in a research note.