STOCKS | Morgan Stanley Raises Qualcomm Rating and Price Target After Data Center Outlook

Morgan Stanley raised its rating on Qualcomm to equal-weight from underweight and increased its price target to $231 from $146 after the company presented a more optimistic-than-expected data center outlook at its investor day. According to Odaily, Morgan Stanley said Qualcomm’s management provided guidance for $5 billion in AI-related revenue in fiscal 2027, which the bank said is at least double market expectations. Morgan Stanley said the data center opportunity is accelerating Qualcomm’s business diversification faster than anticipated. The bank noted that management aims to capture more than 5% of a $1 trillion total addressable market for data centers within five to seven years. Morgan Stanley also raised its fiscal 2027 forecasts for Qualcomm, increasing its revenue estimate to $46 billion from $41 billion and lifting its adjusted earnings-per-share estimate to $10.45 from $9.84.