DZ Bank Backs Qualcomm (QCOM) with Buy Rating; Company Eyes $15 Billion in Sales by 2029 - Insider Monkey

DZ Bank upgraded Qualcomm (QCOM) from 'Hold' to 'Buy' on June 26, 2026, with a price target of $265, following the company's announcement that its data center business could generate $15 billion in sa... Read original →

Qualcomm’s aggressive pivot into data center and AI chips is triggering a deep restructuring of the semiconductor stack: if its Oryon CPU architecture hits $1B in custom chip revenue by FY2027, TSMC (Taiwan, China) will likely prioritize sub-3nm capacity for Qualcomm, indirectly squeezing AMD and NVIDIA’s HPC wafer allocations. Geopolitical compliance costs have risen ~15% due to U.S. export controls on advanced tools to China, though diversification to India and Vietnam for assembly/test mitigates some risk. While NVIDIA retains dominance in AI training, it may accelerate Grace CPU + Arm ecosystem adoption at the edge to undercut Qualcomm’s on-device AI pricing power. Over the next 18 months, integrating 5G modems with dedicated AI accelerators could let Qualcomm lock in industrial IoT and automotive communication modules—creating a 'wireless-plus-compute' moat far more defensible than chasing raw data center market share.