Qualcomm Inc. (NASDAQ:QCOM) shares jumped 6% on Friday after Daiwa Securities upgraded the semiconductor company from Neutral to Outperform and raised optimism around its long-term growth opportunities.
Daiwa sets new $225 price target
Daiwa analyst Louis Miscioscia issued the upgrade alongside a new price target of $225 per share.
The move followed Thursday’s close at $202.50, while the stock was already trading 5.6% higher in premarket activity. Qualcomm shares have climbed more than 60% over the past month.
Analysts highlight potential valuation re-rating
In the research note, Daiwa questioned whether Qualcomm could become the next chipmaker to experience a significant valuation re-rating, drawing parallels with recent investor enthusiasm surrounding Arm Holdings.
The analyst pointed to Qualcomm’s upcoming investor day as a potentially important catalyst, with management expected to outline growth opportunities linked to data centre CPUs, physical computing technologies and edge artificial intelligence.
Focus shifts toward long-term AI opportunities
Although Qualcomm’s guidance for the third quarter of fiscal 2026 came in below market expectations, Daiwa said investors may increasingly focus on the company’s longer-term earnings potential.
Miscioscia highlighted Qualcomm’s future revenue growth prospects and relatively moderate valuation as key reasons behind the upgrade to Outperform and the new $225 target price.