Qualcomm's Data Center Strategy Could Create $5B to $7B Revenue Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy QCOM?
Source: seekingalpha
- Revenue Potential Analysis: Qualcomm (QCOM) anticipates its data center strategy could generate a revenue opportunity of $5B to $7B by 2027, indicating strong growth potential in emerging markets that may attract increased investor interest.
- Rating Upgrade: Wells Fargo upgraded Qualcomm's stock rating from Underweight to Equal-weight and raised its price target from $135 to $150, reflecting confidence in its future growth prospects, which could positively impact the stock price.
- Acquisition Integration Advantages: The recent acquisitions of Alphawave Semi and Ventana Micro Systems are seen as enhancing Qualcomm's AI-series solution capabilities, with analysts noting that these acquisitions will support Qualcomm's ability to offer custom solutions to hyperscale customers, further strengthening its market competitiveness.
- Market Challenges and Opportunities: Despite Qualcomm's stock falling 18% year-to-date, the impending end of its partnership with Apple (AAPL) and the ongoing memory chip shortage affecting the overall handset market may prompt Qualcomm to accelerate its data center strategy implementation to address future market challenges.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 127.280
Low
165.00
Averages
197.14
High
225.00
Current: 127.280
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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