Woofun AI reports that Bernstein raised Qualcomm's price target from $140 to $235 following the company's Investor Day in New York, maintaining a Market Perform rating. This valuation adjustment acknowledges Qualcomm's strategic pivot beyond smartphone chips into AI data centers, automotive, IoT, and personal AI devices. The firm's model now projects FY2029 revenue at $64.8 billion with non-GAAP EPS of ~$18.12.

Qualcomm outlined aggressive FY2029 targets, including non-smartphone revenue reaching approximately $40 billion and data center revenue exceeding $15 billion from a current base of roughly $300 million. The data center roadmap encompasses custom ASICs, AI Inference Accelerators, connectivity products, software layers, and the Dragonfly C1000 CPU. Two unnamed Hyperscaler customers are expected to contribute over $1 billion each in custom silicon revenue by FY2027, while a multi-generational collaboration with Meta will see the Dragonfly C1000 CPU begin production in H2 2028.

Automotive and IoT sectors face distinct growth trajectories with FY2029 revenue targets set at $10 billion and $14 billion respectively. The automotive design-win pipeline has expanded significantly to $65 billion, underpinning the long-term outlook for these segments. Per Woofun AI, the financial model assumes a data center gross margin of approximately 40%, which could lower overall gross margins from 55.2% in FY2026 to 51.6% in FY2029.

Short-term headwinds persist as FY2027 Android phone revenue is projected to be flat or slightly down. Apple's revenue exit poses a specific risk, potentially reducing total handheld device revenue by $5-6 billion year-over-year. While Android handheld revenue CAGR from FY2026 to FY2029 is estimated at roughly 5%, OPEX is expected to see double-digit growth in FY2027 driven by R&D and ecosystem investments.

The $235 price target reflects a 20x P/E valuation based on an average EPS of approximately $11.75 for FY2027 and FY2028, an increase from the previous 14x multiple.

However, a downside scenario exists where missing data center targets could constrain FY2029 EPS to roughly $15. This divergence between long-term ambition and near-term execution risks defines the current investment thesis.