Susquehanna adjusts chip stock price targets ahead of earnings: AMD (AMD.US), Qualcomm (QCOM.US), and others upgraded

Ahead of earnings season, Susquehanna adjusted its price targets for a basket of semiconductor stocks, including AMD (AMD.US), Intel Corporation (INTC.US), and Qualcomm (QCOM.US). Susquehanna analyst Christopher Rolland wrote in a note to clients: "While we expect most of the upside to remain AI-related, the broader semiconductor upcycle continues, with lead-times in our SemiSIGnals data extending by about two weeks for a second consecutive quarter. More importantly, pricing actions are becoming increasingly aggressive, and we observed a maximum quarter-over-quarter increase of 12% in 3Q25 (channel checks indicate further price increases in 4Q26 and into 2027). In the PC market, third-quarter ODM production came in significantly below our prior expectations. As a result, we expect both AMD and Intel Corporation's client businesses to be below seasonal levels in the second half." The analyst noted: "Given the deterioration in the PC market, both companies are shifting wafers from PC to servers to better serve the emerging agentic demand inflection point. While the magnitude of the server upside 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 gaining share, as they increasingly serve as host CPUs for custom AI accelerators (TPUv8/Trainium 3)." The analyst further added: "Notably, revenue expectations for Arm's AGI CPU have also been raised, with potential upside to approximately $2 billion versus an initial target of about $1 billion. Similar to the PC market, we expect the handset market to face significant headwinds due to continued memory supply constraints. On the data center (DC) side, hyperscaler capex plans continue to expand, but LPS constraints raise questions about how much of the planned gigawatt (GW)-scale capacity will ultimately materialize."