Bank of America Securities analyst Vivek Arya maintains an Underperform rating on Qualcomm Inc and raised the price target to $195 from the previous $165. The cautious stance comes ahead of Qualcomm's Investor Day on June 24, where the company is expected to unveil new AI efforts. Despite the higher price target, the analyst questions if Qualcomm is too late to become a significant entrant in a crowded market.

Rating and Price Target Details

The revision reflects a review of Qualcomm's position in the market. The Underperform rating suggests a cautious outlook relative to broader market performance, even as the price target acknowledges recent stock momentum.

AI and Data Center Challenges

Arya expects Qualcomm to share details on its AI opportunity, roadmap, and engagements, as well as diversification efforts away from handsets. The analyst estimates a near-term addressable opportunity of $2 billion to $5 billion by FY27/28E. The goal of the Investor Day is to demonstrate that Qualcomm can derive the majority of its revenue from non-smartphone segments such as data centers, AI, automotive, and the internet of things.

However, the analyst believes Qualcomm is re-entering a fast-growing but hyper-competitive AI market dominated by large incumbents. Key competitors identified include NVIDIA Corp, Broadcom Inc, and Advanced Micro Devices Inc. Arya estimates $10 billion in data center and AI sales for calendar year 2028 but suggests this success may already be priced into the stock following a recent rally. Qualcomm is also expected to address media reports regarding potential M&A to expand its data center footprint.

Stock Performance

Qualcomm stock is down 8.50% to $203.04. The stock has a 52-week trading range of $121.99 to $259.92. Year-to-date in 2026, the stock is up 18.1% and has gained 33% over the last 52 weeks.

Qualcomm has launched Snapdragon START, a new platform designed to enable the next phase of personal AI devices. The initiative aims to expand the ecosystem for on-device AI capabilities, providing a foundation for future hardware and software integration.

Platform Objectives

Snapdragon START focuses on advancing the development of personal AI devices. The platform is intended to support manufacturers and developers in creating devices that leverage on-device AI processing. This move aligns with the industry's shift towards integrating AI directly into consumer electronics.

Strategic Implications

The launch represents Qualcomm's effort to establish a standardized framework for personal AI devices. By providing a dedicated platform, the company seeks to accelerate the adoption of AI features in smartphones, wearables, and other connected devices. The specifics regarding technical specifications or partnership details were not disclosed in the initial announcement.