RBC Boosts Qualcomm Price Target Amid Amazon Data Center Deal
RBC Capital has increased its price target for Qualcomm to $180 from $160, citing the company's strategic agreement with Amazon as a positive development.
The deal should help Qualcomm establish a foothold in the data center AI segment and reduce risk around management's data center revenue targets for fiscal years 2026 and 2027.
RBC noted that management is maintaining its revenue targets, implying Tuesday's disclosure is mostly a formalization or extension of a prior agreement.
The firm views the announcement positively but will maintain its Sector Perform rating while awaiting evidence of volume ramps.
In related news, Qualcomm has announced a significant partnership with Amazon to develop next-generation AI datacenter infrastructure, which includes custom silicon for inference and optical connectivity solutions.