Susquehanna raises pre-earnings price targets for chip stocks: AMD (AMD.US), Qualcomm (QCOM.US), etc. receive upward revisions

According to Golden Ten Data APP, ahead of earnings season, Susquehanna has adjusted the target prices for a basket of semiconductor stocks, including AMD (AMD.US), Intel (INTC.US), and Qualcomm (QCOM.US).

Susquehanna analyst Christopher Rolland wrote in a client report: “While we expect most of the upside to remain AI-related, the broader semiconductor upcycle is still ongoing; in our SemiSIGnals data, lead times have extended by about two weeks for the second consecutive quarter. More importantly, pricing actions are becoming increasingly aggressive; we observed a maximum quarter-over-quarter increase of 12% in 3Q25 (channel research indicates there will be further price hikes in 4Q26 and into 2027). In the PC market, ODM output in the third quarter was significantly below our previous expectations. Therefore, we anticipate that both AMD and Intel’s client business in the second half of the year will come in below seasonal levels.”

The analyst pointed out: “Given the deterioration in the PC market, both companies are shifting wafers from PCs to servers to better serve the emerging agentic demand inflection point. While the magnitude of the server upcycle ultimately depends on the pace of incremental capacity, the server total addressable market (TAM) continues to expand, driven by market interest in agentic AI products/applications. Beyond x86, we expect ARM-based hyperscale CPUs to continue to gain share as they increasingly serve as host CPUs for custom AI accelerators (TPUv8/Trainium 3).”

The analyst further added: “Notably, the revenue outlook for Arm’s AGI CPU has also been raised, with potential upside to around $2 billion, compared to the initial target of around $1 billion. Similar to the PC market, we expect the mobile phone market to face significant headwinds due to ongoing tight memory supply. In the data center (DC) segment, hyperscalers’ capital expenditure plans continue to expand, but limitations on LPS cast doubt on how much of the planned GW-level capacity will ultimately be realized.”