Morgan Stanley Upgrades Qualcomm (QCOM) but Remains Cautious on AI Roadmap

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 14 AI Stocks Making Moves on Wall Street: Nvidia, Micron, and More.

While Qualcomm’s expanding data-center revenue opportunity makes it difficult to remain bearish, one investment firm remains skeptical due to its product roadmap and competitive positioning. On June 25, Morgan Stanley upgraded Qualcomm to Equal-weight from Underweight and increased its price target to $231 from $146.

According to the firm, QCOM’s $5 billion in FY27 guidance for data center lands the company into the “data center winner” category. However, the $15 billion figure by FY29 is also surprising but less certain.

The $5 billion figure seems closer to reality, which makes it difficult to argue against the stock. While QCOM’s future product roadmap is still not clearly understandable, the revenue opportunity and overall strength in AI remains robust.

In particular, Morgan Stanley talked about QCOM’s accelerator opportunity which the company may start generating meaningful revenue from in the second half of fiscal 2027. The firm will wait for its show me moment before becoming strongly optimistic.

QCOM also seems to be behind competitors, such as Cerebras and Nvidia.

Qualcomm seems well behind other approaches – Cerebras, who is in the market now, and NVIDIA’s LPUs ramping later this year, and several startups all seem to be productizing well before Qualcomm, and we feel like we need to get customer validation before underwriting big numbers here.

The firm ended its investor note by stating how Microsoft’s comments were a positive proof point, but they look like a possible future collaboration instead of a firm commitment.

QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry.

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