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Top chip analyst on Qualcomm-NXP deal and who's next

People walk past Qualcomm's stand during the Mobile World Congress in Barcelona, Spain February 24, 2016.
Albert Gea | Reuters

Top-ranked analyst Timothy Arcuri of Cowen, who argued for a merger between Qualcomm and NXP Semiconductors a year ago, boosted his target price for Qualcomm by 8 percent to $74 on Thursday following news that a merger agreement between the two had been reached.

The analyst also gave his predictions on future M&A in the chip space, including a competing bid for NXP.

"While not without integration challenges, the bottom line is that we love this deal for QCOM…" wrote Arcuri in a research note. "Given the significant accretion to this deal and how much we think QCOM needs NXPI, we are frankly a bit surprised NXPI would not push for a higher price."

Arcuri's picks have a 13 percent one-year average return with a 66 percent success rate, according to analyst ranking service TipRanks, placing him in the top 2 percent of all Wall Street analysts covering any industry.