Morgan Stanley has observed that Qualcomm's prospects in the data center business are outperforming expectations. The company's AI-related revenue is anticipated to soar to $5 billion by fiscal 2027, significantly outpacing market forecasts. Qualcomm is swiftly advancing in diversifying its business, with an ambition to secure over 5% of the total addressable market in the trillion-dollar data center sector within the next 5 to 7 years. This strategic move could potentially position Qualcomm as a diversified AI infrastructure provider. In light of these developments, Morgan Stanley has upgraded Qualcomm's rating from 'Underweight' to 'Equal-weight' and revised its target price upwards from $146 to $231. Additionally, the firm has revised its revenue projection and adjusted earnings-per-share (EPS) estimate for fiscal 2027, raising them from $41 billion and $9.84, respectively, to $46 billion and $10.45.