Qualcomm Stock Surges 12% on Investor Day as ByteDance Inks Major AI Chip Deal

According to Benzinga, Qualcomm's stock surged 12% on June 24 after the company announced a major AI chip deal with ByteDance for its data centers and revealed ambitious growth targets at its investor day in New York. The deal marks Qualcomm's entry into the AI data center market as a key supplier.

Qualcomm unveiled plans to generate $40 billion in annual revenue from non-smartphone businesses by 2029, with AI data centers expected to contribute $15 billion yearly. The company also introduced the Dragonfly C1000 AI processor and announced Meta will adopt its new-generation AI chips for data center operations. Additionally, Qualcomm acquired AI startup Modular for $3.9 billion. Wall Street responded bullishly, with UBS raising its price target to $235 from $170, RBC Capital to $250 from $175, and Benchmark lifting it to $300. Morgan Stanley upgraded its rating to "hold" from "sell," raising its target to $231.