Morgan Stanley Upgrades Qualcomm (QCOM) but Remains Cautious on AI Roadmap

While Qualcomm's expanding data-center gross accidental makes it hard to stay bearish, 1 concern steadfast remains skeptical owed to its merchandise roadmap and competitory positioning. On June 25, Morgan Stanley upgraded Qualcomm to Equal-weight from Underweight and accrued its terms people to $231 from $146.

According to the firm, QCOM's $5 cardinal successful FY27 guidance for information halfway lands the institution into the "data halfway winner" category. However, the $15 cardinal fig by FY29 is besides astonishing but little certain.

The $5 cardinal fig seems person to reality, which makes it hard to reason against the stock. While QCOM's aboriginal merchandise roadmap is inactive not intelligibly understandable, the gross accidental and wide spot successful AI remains robust.

In particular, Morgan Stanley talked astir QCOM's accelerator accidental which the institution whitethorn commencement generating meaningful gross from successful the 2nd fractional of fiscal 2027. The steadfast volition hold for its amusement maine infinitesimal earlier becoming powerfully optimistic.

QCOM besides seems to beryllium down competitors, specified arsenic Cerebras and Nvidia.

Qualcomm seems good down different approaches – Cerebras, who is successful the marketplace now, and NVIDIA's LPUs ramping aboriginal this year, and respective startups each look to beryllium productizing good earlier Qualcomm, and we consciousness similar we request to get lawsuit validation earlier underwriting large numbers here.

The steadfast ended its capitalist enactment by stating however Microsoft's comments were a affirmative impervious point, but they look similar a imaginable aboriginal collaboration alternatively of a steadfast commitment.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry.

While we admit the imaginable of QCOM arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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