Qualcomm Is Striving for a Bigger Piece of AI Infrastructure. Here’s What That Means for QCOM Stock.

Qualcomm (QCOM), known primarily for making smartphone processors, is slowly gaining traction in three new markets: Data Centers, Automotive, and IoT. This has led J.P. Morgan’s analyst, Samik Chatterjee, to put the semiconductor company on a positive catalyst watch. He expects Qualcomm to announce revenue targets of over $3 billion by 2027 and $35 billion by 2031 through data centers alone. The data center market is currently dominated by tech giants such as Nvidia (NVDA), Advanced Micro Devices (AMD), and Intel (INTC), so Qualcomm is stepping into a fairly competitive market. In addition, he believes that by 2031, the company will be generating a revenue of $17 billion each from its automotive and IoT sectors.

In the last fiscal quarter, more than 66% of Qualcomm CDMA Technologies (QCT) revenue came from handsets, with the automotive and IoT sectors constituting the remainder. Chatterjee expects this to transform significantly, as he predicts 70% of the firm’s revenue to be through the non-handset market by 2031, with data centers accounting for 35% of it. With the analyst expecting the non-handset revenue to grow by over 40% per year, he’s raised his price target from $160 to $265 while maintaining a “Neutral” rating. This prediction has come just weeks ahead of the firm’s investor day on June 24, where the Qualcomm management will discuss its long-term goals with the Wall Street analysts.