|Bid||71.12 x 1000|
|Ask||71.06 x 1400|
|Day's Range||70.80 - 72.59|
|52 Week Range||49.10 - 90.34|
|Beta (3Y Monthly)||1.59|
|PE Ratio (TTM)||37.54|
|Earnings Date||Jul 31, 2019|
|Forward Dividend & Yield||2.48 (3.71%)|
|1y Target Est||88.77|
President Trump’s tweet about the upcoming meeting with Chinese President Xi Jinping helped boost market sentiments yesterday. Qualcomm (QCOM), Intel (INTC), and Advanced Micro Devices (AMD) rose 4.1%, 2.7%, and 4.3%, respectively.
When Donald Trump was elected as the US President in 2016, we saw a sharp rally in some stocks, especially in the metals and mining space. Trump’s pro-growth policies and trillion-dollar infrastructure plans were expected to lift US metal consumption.
If the Fed doesn't signal significant easing ahead, the markets could nosedive. Many analysts agree that the markets might be overpricing the Fed's rate cuts this year.
Amazon is interested in purchasing a stake in NinjaCart. Currently, food retail is a booming business in India. Grocery purchases accounted for more than 61% of all the retail spending in India last year.
Apple (AAPL) seems to be exploring options to partially move its iPhone and other product manufacturing out of China. Apple wants to move ~15%–30% of its production out of China.
NVIDIA's (NVDA) partnership with Volvo will help it to expand presence, and improve competitive prowess against Intel, Qualcomm and DXC in the autonomous vehicle market.
On June 18, the broader market rose sharply after President Trump’s tweet raised the possibility of a near-term solution to the ongoing US-China trade war. The US chip industry has been impacted by the trade war.
Qualcomm (NASDAQ:QCOM), one of the largest U.S. semiconductor makers, has been on a roller coaster ride this year. Following some favorable legal wranglings against Apple (NASDAQ:AAPL), QCOM stock surged in April before giving back all those gains in May.Source: Karlis Dambrans via FlickrThat retreats came as Qualcomm and some rival domestic semiconductor manufacturers found themselves front and center in the U.S.-China trade imbroglio. Over the past month, Qualcomm stock is off by 16.54%, a loss that is more than 1,000 basis points worse than the decline by the widely followed PHLX Semiconductor index over the same period.Many of the recent ills endured by Qualcomm stock are attributable to the company's relationship with the controversial Chinese company Huawei, which was recently blacklisted by U.S. regulators.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"While coverage surrounding the U.S. government's Huawei ban has focused primarily on how the Chinese tech giant will be affected, it's worth remembering that the company's U.S. suppliers also stand to lose a great deal of money in the fallout of President Trump's executive order," reported TechRadar. * 7 Top-Rated Biotech Stocks to Invest In Today Coming down hard on a Chinese company can make for good politics, but there are consequences for American companies, too, particularly in the technology sector. In fact, Qualcomm and rival Intel (NASDAQ:INTC) are among the firms lobbying hard against the Huawei ban.Other Qualcomm rivals, notably Broadcom (NASDAQ:AVGO), are delivering glum earnings or revenue guidance, citing the China trade war. Issues Besides ChinaMay was a bad month for QCOM stock for reasons besides China. Actually, trade tensions were more like another sour ingredient to an already-toxic cocktail that was Qualcomm stock last month. The shares were hit by a double-digit loss on May 24 after U.S. District Judge Lucy Koh ruled in favor of the Federal Trade Commission (FTC) in an antitrust action it brought against Qualcomm.The judge ruled the company used its strong position in the wireless chip market to charge excessive royalties for its patents, unlawfully hurting competition, Barron's reported.Of course, Qualcomm is appealing that ruling to the U.S. Court of Appeals for the 9th Circuit, representing yet another legal overhang for QCOM stock and that means uncertainty and there's nothing that markets hate more than uncertainty."We fully expect Qualcomm to appeal this ruling and try to get the injunctive remedies put off," said Morningstar analysts. "We don't believe Qualcomm's recent licensing agreement with Apple is at risk, yet. That said, we are lowering our fair value estimate for narrow-moat Qualcomm from $80 to $72 and increasing our uncertainty rating to very high as we believe there is too much up in the air related to this ruling and the ongoing Huawei-related issues."Swap "ucertainty" for "lack of clarity," and that's how other analysts are viewing Qualcomm stock right following the company's legal scrap with the FTC. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 "What is clear is that this decision was entirely unexpected and the impact on the business model could be material, assuming QCOM loses on appeal," said Evercore ISI analyst C.J. Muse. "No changes to our rating and price target now as we await more clarity, but there is no doubt this decision will drive shares lower and potentially keep investors (again) on the sidelines until there is more clarity to the certainty of QCOM's royalty and chipset businesses. We will come back as soon as we have more clarity." Bottom Line on QCOM Stock: A Lot Of RisksOn a technical basis, QCOM stock has support at $69, but a violation of that area could result in a decline down to the 200-day moving average more than 9% away.The company's next earnings report is due on July 24 and analysts are expecting Qualcomm to post earnings of 62 cents a share. Should negative guidance, a la Broadcom, emerge, QCOM stock would likely be punished.Additionally, Qualcomm stock trades well below the average analyst price target of almost $89, meaning that if the sell-side starts revising that forecast down, with several negative revisions in a condensed period of time, the shares will sag.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post For All Of The Problems Facing Qualcomm Stock, China Looms Largest appeared first on InvestorPlace.
Recently, there has been significant turmoil surrounding the electronics component sector, specifically in wireless equipment and semiconductors. This was mostly due to the US blacklist of Huawei in May, coupled with increased US-China trade war tensions.
Owning a position in Qualcomm, Inc. (NASDAQ: QCOM ) is "still worth the noise" as there are three paths for the stock to move as high as $120 per share under a bull-case scenario, according to ...
Semiconductor stocks could fall further toward the end of June if the United States decides to impose tariffs on the additional $300 billion of Chinese imports and China retaliates with export restrictions on rare earth minerals. The semi stocks could also be impacted by a weak second-quarter earnings season that reflects the financial impact of the trade war.
Chip stocks have been on a volatile ride over the past year as investors have struggled to grapple with where exactly the semiconductor industry goes next.The iShares PHLX Semiconductor ETF (NASDAQ:SOXX) rallied to all-time highs in mid-2018 as the industry broadly benefited from record cloud data-center spend, steady PC and smartphone growth, strong global auto growth and burgeoning demand in the AI and IoT end-markets. But, in late 2018, the SOXX ETF tumbled more than 25% on concerns that a slowing global economy was going killing all that robust demand, at the same time that supply was building across the whole sector.Chip stocks shrugged off those fears in early 2019. As the global economy stabilized and recession fears disappeared, so did concerns regarding a slowdown in the semiconductor space. The SOXX ETF rallied back to all-time highs by late April 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen, another sell-off began. Trade tensions re-escalated. Recession fears came back. So did concerns surrounding global semi demand. Chip stocks sold off. They remain in selloff mode today. As of this writing, the SOXX ETF trades 15% off its April 2019 highs.What's next in this wild trip for chip stocks? Tough to say. But, it is easy to say that these stocks are broadly staring at big demand headwinds in 2019.The PC and smartphone markets globally are flattening out, because everyone who wants either a computer or a smartphone, already has one. Global auto sales are dropping, especially in China, as consumers continue to express caution with the global economy slowing. Big tech companies are likewise acting more cautiously, and record data-center spend in 2018 is coming down in 2019. * 7 Top-Rated Biotech Stocks to Invest In Today Net net, the backdrop isn't great for chip stocks right now. As such, investors should be cautious when considering an investment in any of the following chip stocks. Micron (MU)Source: Shutterstock One of the riskiest chip stocks here and now is memory chip giant Micron (NASDAQ:MU), for the simple reason that the memory market is notoriously and violently cyclical.In the memory market, it's all about supply-demand fundamentals. When demand is high and supply is low, memory chip prices are high, and memory chip-makers make boat loads of profits. But, when demand is low and supply is high, memory chip prices are low, and memory chip-makers make no profits. Unfortunately, supply and demand in the memory market cycle often and dramatically. Eras of high demand and low supply are usually followed by eras of low demand and high supply. Just look at a chart of Micron's profits or stock price over the past two decades.Right now, we are in the process of the memory market going form high demand and low supply, and to rising supply and falling demand. The rising supply part seems to be moderating. But, the falling demand part isn't moderating, mostly because rising geopolitical tensions continue to dilute memory chip demand. So long as that remains true, Micron's profits will continue to drop, and so will MU stock.As such, until the global memory market demand picture turns positive, MU stock will have a tough time staging a big turnaround. Broadcom (AVGO)Source: Shutterstock One of the biggest semiconductor companies in the world, Broadcom (NASDAQ:AVGO), is not exempt from the macro factors diluting demand across the global semi industry.Broadcom just reported solid second-quarter numbers, which broadly topped expectations and included double-digit revenue growth alongside healthy margin expansion. But, management also delivered a significantly sub-par, full-year guide thanks to what they are calling a "broad-based slowdown in the demand environment". The culprit? Rising geopolitical uncertainties that are causing customers to reduce inventory levels.So long as this slowdown persists, AVGO stock will have a tough time rallying. The stock isn't particularly cheap here relative to its historical standard, at 12-times forward earnings today versus a five-year average forward multiple of 13. As such, you have a stock with not-so-good, go-forward fundamentals, trading at a historically average valuation. * The 7 Best Tech Stocks to Buy for the Second Half of 2019 That's not a great combo. Until this stock gets cheaper -- or until the fundamentals improve -- AVGO stock will likely fail to rally. Qualcomm (QCOM)Source: Shutterstock The story at Qualcomm (NASDAQ:QCOM) is riddled with question marks. All those question marks against the backdrop of a depressed semi market backdrop could keep QCOM stock stuck in neutral for the foreseeable future.Qualcomm scored a huge win recently, when Apple settled with the chip giant, paid the company a huge lump sum royalty payment and came back on as a Qualcomm customer. Shortly after that, though, it was ruled that Qualcomm's patent royalty practices violated U.S. antitrust law. That's a big deal, since most of Qualcomm's profits come from the high-margin licensing business. The ruling broadly implies that the licensing business is going to have to change, and in a way that will probably dilute profits.Consequently, investors are stuck asking themselves exactly what Qualcomm's licensing business will look like in a few years. The truth is, no one knows. Investors don't like uncertainty. They especially don't like uncertainty when it comes against the backdrop of a depressed macro semi market struggling with falling demand and geopolitical tensions.To be sure, none of these issues will last for QCOM stock. The stock does look like a good long-term buy here, since long-term fundamentals are healthy. But, near-term uncertainty will ultimately keep QCOM stock depressed for the foreseeable future. Advanced Micro Devices (AMD)Source: AMD The story at Advanced Micro Devices (NASDAQ:AMD) is a bit different than the story supporting other chip stocks at the current moment.Specifically, the story at AMD is actually much better. AMD has taken an innovation lead over competitor Intel (NASDAQ:INTC) in the CPU market, and it has leveraged that innovation lead to rapidly grow market share over the past several quarters. This market share expansion has driven out-sized revenue growth and margin expansion, which has produced robust profit growth. This market share expansion narrative projects to persist for the foreseeable future, meaning AMD should continue to report pretty good numbers.But, this market share expansion is happening in a market that's struggling with falling demand. At the core of this falling demand is reduced cloud data-center spend from the titans of tech. This spend reduction is a temporary phenomena. But, so long as it lasts, AMD's numbers won't be as good as they need to be, to support the stock's near 50-times forward multiple. * 10 Tech Stocks to Buy Now for 2025 As such, while the story at AMD is better than the story for other chip stocks, the stock is not exempt from macro demand headwinds, and those macro demand headwinds could ultimately hinder the richly valued AMD stock from rallying much further. Nvidia (NVDA)Source: Shutterstock When it comes to shares of GPU giant Nvidia (NASDAQ:NVDA), you have a situation of near-term pain and long-term gain.In the near term, Nvidia will continue to struggle with inventory and pricing issues as cloud data-center spend moderates against the backdrop of a slowing global economy and rising geopolitical tensions. So long as these inventory and pricing issues remain, revenue growth at Nvidia will remain tepid, while margins will remain under pressure. NVDA stock will struggle to rally.In the long term, Nvidia will work through these inventory and pricing issues since secular tailwinds support robust demand for the next several years in the data and AI-related markets that Nvidia services. Once those issues are cleared, big revenue growth will come back into the picture, as will margin expansion. This combination will power healthy profit growth, and that healthy profit growth will drive NVDA stock higher.Net net, the situation at Nvidia is one defined by near-term pain and long-term gain. Thus, depending on your time horizon, NVDA stock is either an avoid here, or a good buy. Texas Instruments (TXN)Source: Shutterstock Over at semiconductor giant Texas Instruments (NASDAQ:TXN), you have a chip stock that has worrisome exposure to the slowing global auto market.Texas Instruments views the industrial and auto markets as the best markets in the semiconductor space, and as such, has focused their resources on maximizing exposure to those markets. Over 50% of revenues now come from the auto and industrial markets. Four to five years ago, that number hovered around 40%.The problem here is that the auto market is fading globally. China auto sales have been tumbling for several months. The U.S. auto market has been weak lately, even with low interest rates. The European auto market is seeing declines for the first time since 2013. Broadly, after several years of red-hot growth, the global auto market is in retreat, and that's not good news for Texas Instruments. * The 10 Best Index Funds to Buy and Hold At the same time, TXN stock isn't cheap for a semi stock, trading at 20-times forward earnings. That combination of a not-cheap valuation and mounting headwinds in the company's most important market, ultimately means that TXN stock may not have much room for further upside in the foreseeable future.As of this writing, Luke Lango was long QCOM and INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 6 Chip Stocks Staring At Big Headwinds in 2019 appeared first on InvestorPlace.
Apple (AAPL) is expected to launch 5G-supported iPhones in 2020, much later than other prominent smartphone manufacturers like Samsung, LG, Huawei and Motorola.
Goldman Sachs’ chief US equity strategist, David Kostin, thinks that “rising market concentration” and geopolitical tensions pose a “regulatory risk” to companies, which could harm their fundamentals.
Unless there's a negative update about another escalation in the US-China trade war, the expected rate cut decision could trigger market-wide buying, including in tech stocks, in the near term.
Apple (AAPL) is holding out hope that China will target it as its trade war with the US escalates. The US last month blacklisted Huawei, leading US suppliers to give the Chinese technology star a wide berth. Google has reduced its business dealings with Huawei, while Microsoft (MSFT) has stopped selling Huawei laptops on its digital shop.
China has warned American technology companies Intel (INTC), Qualcomm (QCOM), and others of dire consequences if they respond aggressively to the trade restrictions that American authorities have slapped on Huawei. Last month, the Trump administration blacklisted Huawei as a national security risk, thereby prohibiting suppliers with operations in America from doing business with Huawei.
Just when everyone thought Qualcomm (NASDAQ:QCOM) had solidified its market dominance by ending one battle, two other significant obstacles appeared yo hamper Qualcomm stock.Source: Shutterstock The intensified trade war with China threatened growth in its largest market. Moreover, an FTC ruling that Qualcomm violated antitrust law wiped out most of the recent gains in QCOM stock. However, even though uncertainty remains, Qualcomm's problems are a reason to readjust expectations rather than positions.After Apple (NASDAQ:AAPL) settled its ongoing lawsuit with Qualcomm, QCOM surged by more than 50% in less than two weeks. After that move, I figured it would see a pullback.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe renewed trade war and the FTC's antitrust ruling against QCOM made me even more correct than I had expected. Those events took QCOM back to the $65 per share level by late May. It has since recovered to just under $70 per share. Still, it remains well below the $90 per share peak achieved after the Apple settlement. * 7 Top-Rated Biotech Stocks to Invest In Today Uncertainty and Qualcomm StockOf course, Qualcomm has begun the process of appealing the ruling. For this reason, Qualcomm wants to delay the enforcement of the antitrust decision. LG (OTCMKTS:LGEAF) wants it enforced immediately for fear they will have to sign another deal that they perceive as unfair.Investors should also question if their recent deal with Apple represents a true "settlement." Apple has begun discussions to buy Intel's (NASDAQ:INTC) German modem unit. This is important because this unit makes up the former Infineon, a company that had tried to compete with Qualcomm. Buying this unit could make it possible to develop the needed chipsets internally.For these reasons, I understand the recent sell-off. Most profit forecasts revolved around the company holding more pricing power. Additionally, we know Apple has tried for years to free itself from dependence on Qualcomm. If Apple develops a comparable modem chip, QCOM will suffer. The Long-Term Case for Qualcomm StockHowever, despite the challenges, I remain bullish on Qualcomm.First, the present and the future of wireless still depend on Qualcomm. Much like Microsoft (NASDAQ:MSFT) had a stranglehold on PC operating systems in the 1990s, Qualcomm dominates the market in the chipsets that make smartphones possible.Even though Apple fought for years to not pay Qualcomm's licensing fees, the need for the company's modem chips forced the company to settle. Moreover, the fact that Intel struggled to adequately compete may also mean that Apple's attempt to develop these chipsets internally may not succeed.Right now, investors can buy such dominance for only 13.3 times forward earnings. Profit growth will stagnate this year. Admittedly, earnings could also take a hit if the government starts enforcing the antitrust settlement immediately. However, analysts project a 37.1% increase in earnings next year. They also predict annual profit growth will average 27.05% per year for the next five years.Still, even if the government enforces the settlement now, investors in QCOM stock should consider what I see as a forgotten and underrated dividend. Its current annual payout of $2.48 per share yields almost 3.6%. Moreover, this payout has consistently risen since the company began dividend payments in 2003. Investors should also note that these increases continued, even in recent years when the dispute with Apple hampered the growth of Qualcomm stock. Concluding Thoughts on Qualcomm stockThe trade dispute and the FTC ruling change the expectations surrounding QCOM stock, but they should not change the buy case. Yes, the recent events return QCOM to much the same position it held when it fought its costly dispute with Apple.However, investors need to remember that at least for now, we have a lucrative monopoly that should soon benefit from the technological quantum leap. Those who buy now pay a forward multiple of 13.3. Moreover, QCOM has become underappreciated as a dividend stock.It yields almost 3.6% and has maintained close to an annual track record of payout hikes for the last 16 years. The long-time dispute with Apple did not slow these increases, the more recent challenges likely will not either.Qualcomm stock has brought a great deal of frustration to investors. However, those that let emotions get the better of them could miss out on one of the more significant growth and income equities in today's market.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Don't Let Uncertainty Make You Miss out on This Qualcomm Stock Weakness appeared first on InvestorPlace.
(Bloomberg) -- Automakers won control over a choice swath of wireless spectrum 20 years ago on the promise of delivering safety innovations to vehicles.Now, after failing to deliver widespread breakthroughs, they’re at risk of losing those frequencies to Comcast Corp. and other cable companies that say they can use them to offer robust Wi-Fi links to subscribers.The years-long struggle between the industries is nearing an inflection point, with Federal Communications Commission Chairman Ajit Pai signaling he may consider new uses for the airwaves. Pai could announce as early as Tuesday that he’ll schedule a vote to re-examine the allocation at the commission’s meeting next month.“The spectrum, for 22 years, has not reached its highest valued use, and that’s part of the reason why I think it’s important to have an open conversation,” Pai said at a Senate hearing last week. “I’m not saying what the answer should be, I’m simply saying let’s ask the questions that would enable us to have an informed conversation.”That conversation has already kicked off a flurry of activity by stakeholders. A team at Ford Motor Co. gave Pai a ride in a specially outfitted F-150 pickup truck earlier this month. The idea was to demonstrate the technology that could, for example, warn of a scooter’s approach or judge when it’s safe to enter an intersection.“Grateful to Ford for showing us a glimpse of the future,” Pai said in a tweet after his parking-lot spin. “It’s important to have an open conversation about the future of this band” of airwaves.Ford and other carmakers including BMW AG and Toyota Motor Corp., don’t want to lose the rights they gained in 1999 from the FCC for a system designed to link cars, roadside beacons and traffic lights into a seamless wireless communication web to avoid collisions and heed speed limits.Yet after nearly two decades, deployments have been few. An Obama administration proposal to mandate the technology in new cars has been left to languish under the deregulatory agenda pursued by President Donald Trump. General Motors Co. introduced the first factory-equipped model, a Cadillac sedan, just two years ago. And in April, Toyota scrapped plans to equip its cars with the systems starting in 2021.Now even automakers are moving away the original system, and see greater promise in a newer method based on cellular radios -- the system in the F-150 that Ford showed off for the FCC’s Pai. Ford plans to begin equipping all of its U.S. vehicles with the systems starting in 2022.That is an issue for carmakers as the 1999 allocation of airwaves by the FCC locked them into the system envisioned then. They need new rules to use a cellular system, which is backed by several companies including Ford, Audi AG and gear maker Qualcomm Inc.Ford, in a statement, said it is “critical” for the FCC to allow the newer, cellular-based method to use the airwaves because it will become the dominant technology to connect vehicles, infrastructure and pedestrians.Cable providers have pounced, characterizing the currently mandated system as fostering “two decades of stagnation.”They’ve called for ending carmakers’ exclusive rights to the frequencies at 5.9 GHz and allocating all or most of the band to the Wi-Fi systems that carry web traffic for most cable customers.Some consumer groups agree. They include the Consumer Federation of America, the American Library Association, Public Knowledge and the Open Technology Institute at New America.“The best outcome for consumers is to move vehicle safety signaling to a different set of frequencies and allow next generation Wi-Fi to use 5.9 GHz,” Michael Calabrese, director of the Wireless Future Project at the Open Technology Institute, said in an email.Pai controls the FCC’s agenda, and his impatience ushers in a moment of promise -- and peril.“We could maintain the status quo” but “I am quite skeptical that this is a good idea,” Pai said in a speech last month to a gathering that celebrated the Wi-Fi signals used for connections in hotel lobbies, coffee shops and homes.Pai said it would take a formal rulemaking to allow greater Wi-Fi use of the swath, or to let automakers exploit the band for the cellular safety system.Skepticism has arisen within the Trump administration. Transportation Secretary Elaine Chao telephoned Pai to urge the FCC not to use its June meeting to commence its consideration of the airwaves, according to one official briefed on the matter who spoke on condition of anonymity because the conversation wasn’t public.While Transportation Department officials haven’t advanced the previous administration’s proposed mandate, they want autos to hold onto the airwaves.“Preserving the spectrum for transportation safety, which can save lives, is probably more important than slightly faster Wi-Fi,” Derek Kan, the Transportation Department’s undersecretary for policy, said in an interview June 3.To contact the reporters on this story: Todd Shields in Washington at email@example.com;Ryan Beene in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Elizabeth Wasserman, John HarneyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Intel (NASDAQ:INTC) stock is cheap. The Intel stock price sits at just over 10 times earnings. Combined with a 2.7% dividend yield, there's a value case for INTC stock at current levels.Source: Shutterstock But I've been skeptical about that case for some time -- and recent developments don't change my mind. Fundamentally, Intel stock looks cheap. As a business, however, there are plenty of reasons why that is, and should be, the case. Fundamental Concerns for INTC StockIntel stock was rolling not all that long ago. As of mid-April, the Intel stock price had risen nearly 30% in 2019 alone. And then first-quarter earnings sent the stock plummeting. INTC stock dropped 9%, wiping out some $23 billion in market value. * 7 Top-Rated Biotech Stocks to Invest In Today The catalyst was reduced guidance for 2019. Analysts and investors had been looking for a rebound in the second half of the year, after what looked like an early-year pause in datacenter spending. Intel's guidance undercut that case.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIntel followed up a little over two weeks later with its three-year outlook -- and that, too, disappointed. Intel is looking for flat sales in PCs -- which investors might see as overly optimistic. Gross margins are going to be pressured amid Intel's 10nm ramp. Three-year revenue growth, on the whole, even with double-digit growth in datacenter, is supposed to be in the low single digits.It's worth remembering that in both cases, INTC stock fell -- and not because of investor overreactions. The guidance is coming from Intel itself and, in combination, it suggests that Intel's growth is going to be rather meager for three years. Cyclical semiconductor stocks with minimal growth aren't going to see big earnings multiples, which, alone, suggests that the Intel stock price at least is in the right ballpark. How Many Mistakes?There's a broader problem with the disappointing guidance, however. It's difficult for investors to trust Intel at this point, after a series of missteps. As Dana Blankenhorn pointed out last month, Intel is four years late in 10nm; Taiwan Semiconductor (NYSE:TSM) already is at 7nm.Last year, it was discovered its chips were susceptible to hackers. This year, chip shortages have put its datacenter lead at risk, allowing Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) to take share in a market that Intel once dominated.In CPUs, Intel seems at risk as well. AMD's new Ryzen line has been a hit. Intel's shortages are frustrating customers like Dell Technologies (NASDAQ:DELL). Intel's long dominance in PCs may have allowed it to rest on its laurels; it does not, at the moment, have an answer for AMD's rise.So, can investors trust that PC revenue is going to stay flat -- when AMD clearly is taking market share? Is datacenter revenue going to rise double-digits every year when Intel can't keep up with even slower demand? Guidance was disappointing -- and it looks far from certain Intel will be able to even meet its projections.The fundamentals don't look great. The qualitative aspects look even worse. Nvidia and, in particular, AMD clearly are taking share. Intel not only doesn't have an answer right now, it actually seems to be shooting itself in the foot. Given trade war concerns and overall chip weakness, there are plenty of reasons for investors to be worried. The Intel Stock Price Can Get CheaperAll told, it's not a surprise that Intel stock has fallen so far. Indeed, it wouldn't be surprising if Intel stock fell further. 2019 expectations clearly are at risk. 2020 and 2021 growth doesn't look particularly impressive. In a chip space with no shortage of cheap stocks -- think Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM), to name two -- INTC hardly looks like an attractive pick. * 10 High-Yield Monthly Dividend Stocks to Buy Admittedly, that could change. But it requires that Intel start fixing its mistakes -- and start improving its products. It seems we're still a ways off on both fronts. Until then, INTC is likely to trade sideways at best.As of this writing, Vince Martin has a bullish options position in Dell Technologies. He has no positions in any other securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post Repeated Mistakes Are Bound to Haunt Intel Stock appeared first on InvestorPlace.
Qualcomm (QCOM) has selected Samsung (SSNLF) to produce its next flagship chipset, the Snapdragon 865, according to Korean media reports cited by the Firstpost. The Snapdragon 865 chip is expected to come in two versions: there will be one with a 5G modem and another without.
, which last week cut its sales guidance for its current fiscal year by $2 billion due to both a Huawei parts ban and weaker demand from other clients, will see its chip sales to Apple bounce sharply next year. Analyst Ming-Chi Kuo, who has had a fairly high accuracy rate over the years when it comes to Apple product scoops, says that Apple plans to launch 5.4-inch and 6.7-inch flagship iPhones in 2020, along with a new, relatively low-cost, 6.1-inch iPhone (by comparison, the iPhone XS and XS Max have 5.8-inch and 6.5-inch displays, respectively).