RBC Raises Price Target#
RBC Capital has increased its price target for Qualcomm Inc. (NASDAQ: QCOM) shares from $150 to $175 while keeping a Sector Perform rating. Currently, Qualcomm's stock is trading at $156, reflecting a notable 16.5% increase over the past week.
Earnings Report and Market Reactions#
Qualcomm's recent fiscal second-quarter results for 2026 exceeded Wall Street expectations, with earnings per share (EPS) of $2.65, surpassing the forecast of $2.55. Revenue also reached $10.6 billion, slightly above the anticipated $10.58 billion, driven by strong performance in its automotive and Internet of Things (IoT) segments. Following this report, the stock rallied in after-market trading, as management indicated that the third quarter may represent the low point for handset builds in China.
New Chip Wins#
Qualcomm has secured a significant contract for custom silicon with a major hyperscaler, with shipments set to begin in December 2026. RBC Capital speculates that this win may involve a custom CPU or an LPU-like inference solution for either Meta Platforms Inc. or Microsoft Corp. The firm plans to remain cautious until more details are revealed during Qualcomm's upcoming investor day.
Analyst Ratings and Market Sentiment#
In addition to RBC's actions, other analysts have also updated their ratings for Qualcomm. Summit Insights upgraded the stock from Hold to Buy, emphasizing the company's diversification efforts and potential in artificial intelligence (AI). Meanwhile, HSBC raised its price target for Qualcomm from $150 to $155, maintaining a Hold rating. Analysts noted that the stock has already accounted for losses from Apple and weaknesses in the Android market, reflecting a strategic focus on AI opportunities.