Susquehanna looks for third-quarter AI-driven chip earnings upside as it raises AMD and Qualcomm targets, cuts Intel and Coherent

AMD and Qualcomm were among the semiconductor companies whose near-term expectations improved in a recent update from Susquehanna, while Intel and Coherent (COHR) saw target cuts as the firm balanced a more constructive view of AI demand against uneven outlooks across the chip supply chain.

The note, as reported by Yahoo Finance, framed the key swing factor as AI-driven demand feeding into semiconductor earnings. Susquehanna’s stance suggested that, even if the broader market is still cautious, AI-related purchasing could translate into better operating results during the third quarter.

For AMD specifically, the update was part of a broader set of price-target revisions that were described as more optimistic for some AI-adjacent businesses. Susquehanna’s coverage also characterized the upside picture for chip earnings as “modest,” indicating the firm was not calling for a dramatic re-rating, but rather a measured improvement.

Qualcomm was also mentioned in connection with raised targets. The implication for investors is that Susquehanna sees enough incremental demand or improved product momentum to warrant a higher earnings expectation, even as it adjusted other semiconductor names in the opposite direction.

On the downside, Intel and Coherent faced target reductions in the same update. Susquehanna’s divergence across the group points to company-specific questions, such as differences in how quickly products can monetize AI and where each company sits in the hardware stack.

A separate takeaway from the report was the timing of the expected improvement. Susquehanna’s view centered on the third quarter, so investors would likely focus on whether upcoming results and guidance align with the idea that AI demand is translating into earnings power rather than remaining only a narrative.

Beyond individual stocks, the update reflects a common market tension in semiconductors: investors want evidence of sustained AI-related spending, but they also want clarity on whether that spending will produce consistent financial outcomes across vendors. Susquehanna’s mixed target revisions underscore that AI optimism can coexist with selective skepticism.

What remains unclear from the reported summary is how large the target changes were, what specific operating assumptions were adjusted, and whether the firm tied its revisions to any particular product cycles, customer spending patterns, or backlog visibility. The post did not provide those granular details, and no additional filings or company guidance were included in the information available here.