Qualcomm Lost a Third of Its Value in 3 Months. One Wall Street Pro Sees 140% Upside From Here

Qualcomm's stock price plummeted 30% over a three-month period, falling from $241.25 to $168.57. The decline was triggered by a miss on non-GAAP EPS in Q3 earnings, which reported revenue of $9.95 billion, slightly beating estimates, but EPS of $2.21 falling short of the $2.22 target. This was a concerning development for Qualcomm, which had been a top performer in the semiconductor industry.

However, Baird analyst Tristan Gerra believes the stock has significant upside potential, with a target price of $400, representing a 137% upside from current levels. While Qualcomm's earnings miss and handset revenue decline have caused concern, Baird sees opportunities in the company's diversification efforts into automotive silicon and AI data-center compute.

The analyst expects Qualcomm's custom Oryon-based server processors to capture share in the AI data-center market, helping to offset Apple's potential revenue decline. If these expectations materialize, Baird believes Qualcomm could see significant growth in non-handset revenue, reaching $40 billion by fiscal 2029.