DZ Bank Backs Qualcomm (QCOM) with Buy Rating; Company Eyes $15 Billion in Sales by 2029

QUALCOMM Incorporated (NASDAQ:QCOM) is included among the 10 Best Dividend Stocks to Buy for Passive Income.

On June 26, DZ Bank upgraded QUALCOMM Incorporated (NASDAQ:QCOM) to Buy from Hold. It also assigned the stock a price target of $265.

The upgrade came shortly after Reuters reported on June 24 that Qualcomm expects its data center business to generate $15 billion in sales by 2029. The move came as the company continues to expand beyond its core smartphone chip business. The news pushed the company’s shares up more than 12% in after-hours trading.

During an investor presentation, Chief Financial Officer Akash Palkhiwala said the data center business is expected to generate $5 billion in revenue in fiscal 2027. Of that total, $1 billion is projected to come from new custom-chip customers.

The company also increased its long-term outlook for revenue from chips outside its smartphone business. Qualcomm now expects those businesses to generate $40 billion in revenue by 2029, up from its previous estimate of $22 billion. By that time, the company expects handsets to contribute only about one-third of its total chip revenue.

“We will be truly diversified,” Palkhiwala said.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry. Its portfolio includes 3G, 4G, and 5G wireless connectivity, along with high-performance and low-power computing technologies, including on-device artificial intelligence.

READ NEXT: 10 Dividend Stocks With Low Payout Ratios and Strong Upside Potential and 10 Best Canadian Dividend Stocks to Buy for the Next 5 Years

Disclosure: None. Follow Insider Monkey on Google News.