Susquehanna adjusts chip stock target prices ahead of results: AMD (AMD.US), Qualcomm (QCOM.US), etc. were raised

The Zhitong Finance App learned that on the eve of the earnings season, Susquehanna (Susquehanna) adjusted the target price for a package of semiconductor stocks, and AMD (AMD.US), Intel (INTC.US), and Qualcomm (QCOM.US) are all on the list.

Susquehanna analyst Christopher Rolland (Christopher Rolland) wrote in a report to clients: “While we expect most of the upside to be AI related, the broader semiconductor upward cycle continues, and in our SemiSignals data, the lead times (lead-times) have been extended by about two weeks for the second consecutive quarter. More importantly, pricing is becoming more aggressive, and we observed the biggest month-on-month increase of 12% in 3Q25 (channel research shows further price increases in 4Q26 and into 2027). In the PC market, ODM production in the third quarter was significantly lower than our previous expectations. Therefore, we expect that AND and Intel's client business will fall below seasonal levels in the second half of the year.”

The analyst notes, “As the PC market deteriorates, both companies are shifting wafers from PCs to servers to better serve the emerging inflection point of agentic demand. Although the magnitude of server upside ultimately depends on the pace of incremental production capacity, the server addressable market (TAM) is still expanding, driven by the market's interest in proxy AI products/applications. Outside of x86, we expect ARM architecture's very large CPUs to continue to gain their share as they increasingly act as host CPUs for custom AI accelerators (TPUv8/trainium 3).”

The analyst further added: “Notably, revenue expectations for Arm's AGI CPUs have also increased, potentially rising 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 continued limited memory supply. On the data center (DC) side, capital expenditure plans for hyperscale vendors continue to expand, but LPS restrictions raise questions about how much of the planned gigawatt (GW) capacity will eventually be realized.”