Qualcomm (NASDAQ: QCOM) Sees Price Target Hikes Amid AI and Data Center Growth

• Analysts raise price targets for Qualcomm, projecting a potential 27.37% upside.
• The company reported strong financial results, with $12.82 billion in free cash flow in fiscal year 2025.
• Strategic expansion into the profitable data center market and artificial intelligence (AI) initiatives are key drivers for optimism.

Qualcomm (NASDAQ: QCOM) is a major semiconductor company that designs and manufactures products for wireless technology. With a market capitalization of around $184.11 billion, it is a dominant force in the mobile phone chip market and is expanding into other areas like automotive and the Internet of Things (IoT).

An analyst at Argus Research raises their price target for Qualcomm to $220.00. This target is set while the stock trades at $172.73, representing a potential upside of 27.37%. Upside refers to the potential percentage increase an investor may earn from a stock if it reaches its price target.

This positive outlook follows a significant stock surge after the company's Q2 FY26 report, where the price jumped from approximately $150.00 to over $180.00 per share. The company also demonstrates a strong financial position, producing $12.82 billion in free cash flow in fiscal year 2025, a nearly 15% increase year-over-year.

A key driver for this optimism is Qualcomm's entry into the profitable data center market. As highlighted on "Bloomberg Tech," CEO Cristiano Amon also teases a partnership with a large hyperscaler. A hyperscaler is a massive company that provides cloud computing and data storage services on a global scale.

Other firms, including Citi, JPMorgan, and Wells Fargo, also lift their price targets to $160.00. This is in response to Qualcomm's planned artificial intelligence (AI) ramp. The plan includes shipping a specialized AI chip to a large hyperscaler customer in the fourth quarter of 2026.