JPMorgan Significantly Raises Qualcomm Price Target to $265, Bullish on Its Data Center Transformation
Alina Collins
JPMorgan lifted Qualcomm's price target from $160 to $265 — a 65%+ jump — driven by the data-center, automotive, and IoT businesses that are projected to deliver roughly 70% of Qualcomm's total revenue by fiscal 2031.
Why did JPMorgan raise the target so aggressively?
On June 8, analyst Samik Chatterjee placed Qualcomm on JPMorgan's "Positive Catalyst Watch" list, triggered by Qualcomm's upcoming Investor Day on June 24.
This means → JPMorgan is betting not on today's Qualcomm but on the non-handset expansion strategy the company is about to unveil — the price target moved ahead of results.
The rating, however, stays at Neutral. In plain terms = JPMorgan likes the story but sees enough market headwinds to hold off on a Buy call for now.
Data centers — what is Qualcomm's biggest new bet?
Qualcomm's data-center unit is running a three-track strategy: custom chips (designed for specific large clients), general-purpose CPUs, and AI accelerators.
JPMorgan expects Qualcomm to set explicit long-term targets at Investor Day: $3 billion in revenue by fiscal 2027, rising to $35 billion by fiscal 2031.
This means → going from $3B to $35B in four years implies an extremely steep growth curve — Qualcomm wants a major slice of a market Nvidia currently dominates.
Can automotive and IoT carry their weight?
Wall Street forecasts Qualcomm's automotive and IoT businesses will each reach $17 billion in revenue by fiscal 2031.
Combined with the data-center unit's $35B, the three non-handset lines project a compound annual growth rate above 40%.
This reflects a fundamental identity shift — from "mobile-chip company" to "multi-platform company." Handsets remain the base, but they are no longer the growth engine.
What does this mean for Qualcomm's investment case?
By fiscal 2031, non-handset businesses are projected to account for roughly 70% of total revenue, with the data-center unit alone at about 35%.
In plain terms = if these targets are met, Qualcomm's revenue mix flips entirely — handsets move from lead role to supporting cast.
This means → smartphone-market swings will matter far less to Qualcomm, and the visibility on double-digit compound growth in both revenue and profit rises substantially.
Content is for reference only, not financial advice.