On Tuesday, Rosenblatt Securities increased its price target for Qualcomm Inc . (NASDAQ: NASDAQ:QCOM) shares to $240, up from the previous figure of $200. The firm has reaffirmed its Buy rating on the stock.
The revision arrives as Qualcomm is recognized for its advancements in artificial intelligence (AI) and its application across various sectors, including smartphones, PCs, automobiles, and IoT devices.
The endorsement from Rosenblatt follows Qualcomm's recent developments, particularly in the realm of Arm-based central processing units (CPUs) for personal computers. The analyst from Rosenblatt anticipates Qualcomm will soon be at the forefront of market share expansion in the PC market, buoyed by Microsoft (NASDAQ:MSFT)'s backing.
This week, Qualcomm made several key announcements ahead of the Microsoft Build developer conference, scheduled from May 21-23. These announcements are seen as favorable for Qualcomm's stock performance, suggesting potential growth and increased investor confidence.
Rosenblatt's adjusted earnings estimates for Qualcomm reflect a positive outlook on the company's ability to lead in delivering AI and next-generation AI technologies to network edge applications. The firm's analysis suggests that Qualcomm's strategic positioning and partnerships, such as with Microsoft, could propel the company to new heights in the competitive tech landscape.
The price target increase to $240 reflects Rosenblatt's confidence in Qualcomm's future performance and its potential to capitalize on the opportunities presented by AI and Arm-based CPU market share gains.
InvestingPro Insights
As Qualcomm (NASDAQ: QCOM) garners attention for its strides in AI and the CPU market, current InvestingPro data and insights offer a deeper look into the company's financial health and market position. With a robust market cap of $220.7 billion and a P/E ratio of 26.41, Qualcomm shows significant market valuation. The company's revenue stands at $36.41 billion over the last twelve months as of Q2 2024, although it has experienced a revenue decline of 11.35% during the same period. Despite this, Qualcomm's gross profit margin remains strong at 55.81%, underscoring its profitability in generating income relative to the costs.
InvestingPro Tips highlight Qualcomm's consistent shareholder returns, with the company raising its dividend for 22 consecutive years, signaling a reliable income stream for investors. Additionally, Qualcomm's stock has seen a remarkable year-to-date price total return of 37.43%, with analysts revising their earnings upwards for the upcoming period, reflecting optimism in its future earnings potential. These metrics, coupled with a high return over the last year of 91.62%, paint a picture of a company with a strong performance track record.
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