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Qualcomm Surges After Daiwa Upgrade, Extending AI-Fueled Rally

The call signals rising confidence in Qualcomm’s move beyond handsets into higher‑margin AI compute.

Overview

  • Shares jumped after Daiwa lifted the stock to Outperform with a $225 target, with Qualcomm trading near $217 and approaching its $223.66 high.
  • Momentum follows an April 29 earnings beat, as adjusted EPS reached $2.65 on $10.60 billion in revenue.
  • CEO Cristiano Amon said the company expects initial shipments of a custom data‑center chip to a large cloud provider within the year, with more detail slated for the June 24 investor day.
  • Market reports of a Qualcomm–OpenAI effort to build an AI‑native phone chip point to a 2028 production goal, though neither company has confirmed the project.
  • Supportive moves include a new $20 billion buyback, the Alphawave acquisition to deepen data‑center work, and an auto unit now above $5 billion in annualized sales with a run‑rate goal above $6 billion by fiscal 2026.