Loop Capital Upgrades Qualcomm to Buy, Sees 32% Upside
Loop Capital has upgraded Qualcomm (NASDAQ: QCOM) from Hold to Buy, setting a new price target of $185. The upgrade reflects the analyst firm’s improved outlook on the semiconductor giant’s diversification strategy and easing headwinds, with the new target implying approximately 32% upside from recent trading levels.
Why the Rating Changed
Loop Capital’s upgrade centers on several key themes that have shifted the firm’s stance on Qualcomm from neutral to bullish:
- Diversification Strategy Gaining Traction: Loop Capital specifically cited Qualcomm’s broadening business strategy as a primary driver of the upgrade. The company has been expanding beyond its traditional smartphone chipset business into higher-growth areas including automotive, data center AI, and edge computing — moves that are beginning to materially reshape the company’s revenue profile.
- Easing Key Headwinds: The analyst firm noted that key headwinds that previously weighed on the stock are now easing, contributing to a more favorable risk-reward setup for investors. While specific headwinds were not detailed, Qualcomm has faced challenges in recent years related to customer concentration risk and competitive pressures in the mobile chip market.
- AI and Data Center Opportunity: The upgrade comes alongside broader Wall Street enthusiasm for Qualcomm’s AI positioning. Separate coverage from Wells Fargo has highlighted a potential $7 billion AI opportunity for the company, particularly in data center applications. Qualcomm’s work in Physical AI, 6G connectivity, and edge AI is positioning the company at the intersection of robotics, autonomous systems, and next-generation wireless infrastructure.
- Strong Recent Earnings Performance: Qualcomm reported stronger-than-expected earnings for the first quarter of fiscal 2026, providing a solid fundamental backdrop for the upgrade. The company’s results underscored the progress being made across its diversified business segments.
- Multiple Analyst Upgrades: Loop Capital’s move is part of a broader wave of analyst upgrades for Qualcomm, with several Wall Street firms reassessing their outlook on the stock in light of expanding AI and automotive ambitions. This consensus shift suggests growing institutional confidence in Qualcomm’s strategic direction.
Qualcomm’s Dividend Profile
For income-focused investors, Qualcomm continues to offer a meaningful dividend. The company currently pays an annual dividend of $3.56 per share, which translates to a dividend yield of approximately 2.54% at recent prices. The most recent ex-dividend date was March 4, 2026.
Qualcomm’s dividend yield is notable for a semiconductor company, as many firms in the sector either pay modest dividends or none at all. The combination of a nearly 2.5% yield with the potential for significant capital appreciation — as suggested by Loop Capital’s $185 price target — makes the stock a potential candidate for investors seeking both income and growth in the technology sector.
Looking Ahead
The convergence of Qualcomm’s AI strategy, its expanding footprint in automotive and data center markets, and the anticipated evolution toward 6G and scalable robotics platforms collectively form the basis of Loop Capital’s bullish thesis. Investors will be watching closely to see whether the company can continue executing on these diversification initiatives and convert them into sustained revenue growth beyond its core mobile business.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. DivRank.com is not responsible for any investment outcomes based on the information presented here.