Wells Fargo raises Qualcomm target to $230
Qualcomm stock declined following profit-taking and a fake video rally, while Wells Fargo analyst Aaron Rakers maintained an Equal-Weight rating and raised the price target to $230. The company also partnered with SLB Ltd. for edge AI solutions, and technical indicators show mixed momentum with the stock trading below its 20-day SMA.
*this image is generated using AI for illustrative purposes only.
Qualcomm Inc. stock declined on Wednesday as investors weighed a broader semiconductor correction and profit-taking after a sharp multi-month AI rally. The drop follows a volatile session driven by unverified social media content suggesting Nvidia Corp. CEO Jensen Huang endorsed buying the stock. The stock gained 17% year-to-date, topping the S&P 500’s 8% and the Nasdaq 100’s 16% returns.
The initial spike occurred when The Kobeissi Letter circulated a post on X claiming Huang recommended Qualcomm. The post quoted Huang as saying, "I spent the whole day selling other people's stock. It's good, we should be happy other people succeed." However, the rally lost steam after doubts emerged regarding the video's authenticity. Nvidia Corp. did not immediately respond to requests for comment on the footage.
SLB Enterprise Partnership
Amid the market volatility, Qualcomm announced a memorandum of understanding with SLB Ltd. to enable edge AI solutions for the energy industry. The collaboration integrates Qualcomm's low-power edge computing and AI processing with SLB's Agora edge AI and IoT solutions. Nakul Duggal, Qualcomm's EVP and Group GM of Automotive, Industrial and Embedded IoT, and Robotics, stated the partnership brings "low-power AI processing closer to energy operations."
Analyst Outlook
Wells Fargo analyst Aaron Rakers maintains Qualcomm with an Equal-Weight rating and raises the price target to $230 from $160. Previously, JPMorgan analyst Samik Chatterjee kept Qualcomm at Neutral but raised his price forecast to $265 from $160, saying the company could use its June 24 Investor Day to highlight growth in data centers, automotive and IoT. Chatterjee expects Qualcomm to target more than $3 billion in data center revenue in fiscal 2027 and $35 billion by fiscal 2031, supported by custom silicon, merchant CPUs, AI accelerators and Alphawave connectivity. He also expects automotive and IoT revenue to each reach about $17 billion by fiscal 2031. The analyst said non-handset revenue could rise from about $13 billion in fiscal 2026 to about $69 billion by fiscal 2031, representing 69% of total revenue, with data centers accounting for about 35%.
Technical Levels
From a technical perspective, Qualcomm is holding a bullish longer-term structure, trading 10.7% above its 50-day SMA ($179.58) and roughly 20.5% above its 200-day SMA ($164.98). However, near-term momentum has been impacted, with shares trading about 10.8% below the 20-day SMA ($222.82). The RSI stands at 51.95.
| Metric | Value |
|---|---|
| Key Resistance | $206 |
| Key Support | $191 |
| Recent Price | $192.95 |
| Price Change | -6.07% |
Top ETF Exposure
- Tema Global Royalties ETF (ROYA): 5.25% Weight
- First Trust Nasdaq Semiconductor ETF (FTXL): 7.13% Weight
- VanEck Fabless Semiconductor ETF (SMHX): 4.94% Weight
Because QCOM carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
How will the volatility caused by unverified social media rumors impact investor confidence in semiconductor stocks going forward?
What are the potential revenue synergies from the SLB partnership for Qualcomm's industrial and IoT segments?
Can Qualcomm meet the ambitious $3 billion data center revenue target by fiscal 2027 amid increasing competition?
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