Susquehanna has increased its price targets on an array of semiconductor stocks ahead of third-quarter financial results, with most companies expected to report in line or slightly above estimates due to a sustained upcycle.
However, the firm finds that Chinese electric vehicle production and evaporating tariff-related pull-ins might negatively affect fourth-quarter outlooks.
“Still, we expect generally better than seasonal results for the group in the fourth quarter,” said Susquehanna analysts, led by Christopher Rolland, in an extensive Wednesday investor note. “For the PC market, builds are tracking better than expected in 3Q as tariff-related order pull-ins observed in the first half of the year appear to be persisting. We also note the ramp of AI PCs accelerated as our data suggests Intel’s (NASDAQ:INTC) Lunar Lake/Arrow Lake and AMD’s (NASDAQ:AMD) Granite Ridge/Strix Point are now ramping in earnest.”
“For Handsets, 3Q25 smartphone shipments (sell-through) increased 9.3% QOQ in 3Q, stronger than our prior estimate and typical seasonality (+6.6% QOQ),” Rolland added. “Notably, Apple (AAPL) shipments accounted for the majority of the upside here, constructive for Apple semi suppliers in our coverage.”
The Apple suppliers include Cirrus Logic (NASDAQ:CRUS), Skyworks Solutions (SWKS), Qorvo (QRVO) and Qualcomm (NASDAQ:QCOM).
Susquehanna increased price targets on Coherent (NYSE:COHR) to $150 from $120, Credo Technology (NASDAQ:CRDO) to $175 from $165, Cirrus Logic to $155 from $140 and Qualcomm to $200 from $190.