Qualcomm (QCOM) Beats Estimates in Q3 Earnings, Piper Sandler Raises Price Target
Qualcomm (NASDAQ:QCOM) impressively exceeded expectations in its fiscal third quarter earnings report, with adjusted EPS of $2.33 and sales of $9.39 billion, surpassing analyst forecasts. Despite this, weak guidance for the December quarter caused QCOM stock to plummet by over 9%. However, Piper Sandler analysts are optimistic about the tech giant, raising their price target due to the positive impact of artificial intelligence (AI) on Qualcomm’s future.
Qualcomm CEO Cristiano Amon attributed the strong Q3 results to the company’s growth and diversification strategy, particularly highlighting the launch of Snapdragon X Series solutions for personal computers, which offer top performance, power efficiency, and personalized AI experiences.
Although investors reacted negatively to the guidance for the December quarter, projecting mid-single-digit sales growth instead of double-digit, Piper Sandler remains bullish on QCOM stock. The analysts noted that QCOM’s Q3 results and Q4 guidance exceeded expectations, driven by strength in Android devices and modem customers.
Looking ahead, Piper Sandler believes that over half of all PCs will be AI-capable by 2027, positioning Qualcomm favorably in the long term. As a result, they raised their price target on QCOM to $205 from $185 per share, maintaining an “overweight” rating. The consensus view for Qualcomm is a moderate buy, with an average price target of $207.60 per share.
In conclusion, despite the initial market reaction to Qualcomm’s guidance, the long-term prospects for the company appear positive, especially with the growing importance of AI in the tech industry. Investors should consider these factors when evaluating their investment decisions and potential opportunities in the market.