Qualcomm Inc. (NASDAQ:QCOM) shares climbed roughly 6% on Friday morning after Daiwa Securities analyst Louis Miscioscia upgraded the company’s rating from Neutral to Outperform and assigned a $225 price target.
The move came after Qualcomm closed Thursday at $202.50, and the stock was trading about 5.6% higher in pre-market activity on Friday. Over the last 30 days the shares have risen by more than 60%.
In his report, Miscioscia raised the possibility that Qualcomm could experience a reset in its price-to-earnings multiple, drawing a direct comparison to Arm Holdings. The analyst pointed to the company’s upcoming investor day as a key forum where management will outline opportunities in several strategic areas, specifically data center central processing units, physical computing and edge artificial intelligence.
Miscioscia acknowledged that Qualcomm’s guidance for the third quarter of fiscal 2026 was below market expectations. Despite that near-term shortfall, he emphasized the importance of focusing on the company’s longer-term potential. The analyst cited anticipated revenue growth and what he characterized as a modest valuation as the rationale for moving the stock to Outperform and setting the $225 target.
The upgrade and price-target revision reflect Daiwa’s view that the company’s growth vectors discussed at the investor day could justify a re-rating of the stock, even though the most recent quarterly guidance did not meet expectations.
Context and outlook
Investors reacted quickly to Daiwa’s change in stance, pushing the share price higher in early trading. The analyst’s note links the upgrade to both potential earnings multiple expansion and specific growth initiatives the company plans to present to investors.
While the report highlights strategic opportunities, it also underscores the contrast between near-term guidance and longer-term prospects, leaving the market to weigh the timing and magnitude of any potential valuation shift.