79.00 +0.10 (0.13%)
Pre-Market: 9:01AM EDT
|Bid||78.41 x 1100|
|Ask||78.89 x 900|
|Day's Range||77.64 - 79.07|
|52 Week Range||49.10 - 90.34|
|Beta (3Y Monthly)||1.51|
|PE Ratio (TTM)||28.88|
|Earnings Date||Nov 6, 2019|
|Forward Dividend & Yield||2.48 (3.10%)|
|1y Target Est||78.99|
The last 18 months have been hard on the semiconductor industry. Investors sold off chip stocks through the second half of 2018, but a year later the sector is looking better. The turndown was prompted by the US-China trade tensions. That 'trade war' is still simmering, but the two governments are continuing to talk. Investors are less nervous, now that the pattern of tariff-reprisal-delay-negotiate is understood and baked into the affected industries.The current optimism on semiconductor stocks is fueled by the approaching transition to 5G wireless networks. While chip demand is generally low right now, telecom providers are getting ready to switch from 4G to 5G – and that switch will require new chips. Control systems, modems, smartphone devices – companies and customers will see new 5G-compatible models in the next 12 months, and every device will need 5G compatible chips. The chip makers are looking at a resurgence of business next year, and that outlook is starting to lift the chip stocks. Logan Purst, industry analyst from Edward Jones, gave a succinct description of the recent gains in chips: “What’s being priced into these stocks is a rebound next year.”Here we’ve searched for large cap tech stocks and found three upwardly mobile chip stocks in the results. These are companies that have shown solid gains so far this year, as they recover from last year’s malaise. While all will gain from the 5G switchover, their individual paths to success are unique. Micron Technology, Inc.The smallest of the chip makers we’re looking at here, Micron (MU – Get Report) posted $31.8 billion in total sales for 2018, the fifth highest total among the world’s largest semiconductor companies. MU shares are up 59% year-to-date. Much of their momentum has been recent, as the three-month gain is 48%. Indeed we can see that best-performing investors have Very Positive sentiment on MU right now according to TipRanks Smart Portfolio. And analysts expect the recent momentum to help the company’s bottom line in next week’s fiscal Q4 earnings report. EPS is forecast at 43 cents.Longbow analyst Nikolay Todorov sees memory as the catalyst for MU’s future success. He writes, “We are turning more positive on memory fundamentals as we now believe excess inventory will be depleted faster than expected, triggering an improvement in pricing and margin ahead of current expectations.” Todorov’s $66 target suggests a strong upside of 30%.Mark Delaney, from Goldman Sachs, agrees that Micron will benefit from increased memory chip demand during the 5G transition, and that the upcoming earnings report will be the first sign. Anticipating a healthy quarter, he has raised his price target by 5%, to $59, and says that he expects “EPS to be above the mid-point of guidance, as increased bit volumes should help results in the August quarter.” His new price target suggests room for a 17% upside.Overall, MU stock has 15 buy ratings, 6 holds, and 2 sells assigned in the past three months. This gives the stock a consensus rating of Moderate Buy. MU sells for $50.48, and its recent gains have pushed it right up to the average price target of $51.14. Nvidia CorporationNvidia (NVDA – Get Report) is well known to gamers, as the company specialized in the GPUs necessary for a quality gaming experience. The stock, however, took a heavy beating at the end of 2018, reflected in steep quarterly declines reported in February of this year. NVDA shares are turning around, however, and in August reported the third quarter in a row of increasing EPS. Earnings, at 91 cents, beat the 87-cent forecast by 4.4%. Forecasts the November 2019 report show an expected $1.24 per share in earnings. The last time Nvidia reported over $1 in EPS was in November of last year.Share price movement is reflected the recovery in earnings. NVDA is up 34% year-to-date, and as with Micron, the recent momentum is strong. The three-month gain is 17.6%.Writing at the end of August, Benchmark’s 5-star analyst Ruben Roy initiated his coverage of NVDA with a buy rating and a $210 price target. He wrote, “Nvidia is positioned for faster growth relative to semiconductor peers given the increasing use of GPUs across a diverse set of markets.” Roy’s target implies an upside of 16% for NVDA shares.UBS analyst Timothy Arcuri weighed in on Nvidia more recently, also with a buy rating. He sees the company showing steady profitability going forward, saying, “On gaming, we see ~$1.25-1.3B core gaming (ex-Switch) as very do-able for FQ3:20 (Oct) and seasonality should add a big FQ4 tailwind. Additionally, the ~$1.4B/Q normalized revenue is backward looking, and a forward-looking number should likely be as high as ~$1.7-1.8B/Q given annual unit growth.” Arcuri’s price target indicates room for an 8.3% upside to Nvidia’s stock.Nvidia’s analyst consensus is a Moderate Buy, derived from20 buys, 5 holds, and 2 sells set by top analysts in the last three months. The stock’s $187 average price target suggests an upside potential of 4.4% from the current share price of $179. As with Micron, the company’s recent share price gains have pushed the stock up to the price target faster than the analysts could react. Qualcomm, Inc.Holding the seventh spot for revenues among the chip giants, Qualcomm (QCOM – Get Report) posted $16.5 billion in total sales for 2018. The company has shown robust growth year-to-date, with gains of 38%, with a three-month gain of 10.7%. In addition to strong recent momentum, Qualcomm has continued to payout a generous dividend of $2.48 annually. The yield, at 3.14% is more than 50% higher than the average dividend yield in the S&P 500. Qualcomm has had a share of legal ups and downs in recent months. Earlier this year, the company reached a settlement with Apple (AAPL – Get Report) over a patent dispute. As part of the agreement, Apple agreed to pay out a cash settlement of $4.5 billion. In addition, Apple agreed to pay royalties on future use of Qualcomm’s chips. In the FTC v. Qualcomm case, however, the company was handed some bad news – Judge Koh ruled that Qualcomm was violating antitrust laws with its requirement that customer’s sign licensing agreements to use the company’s products. That ruling was stayed by the appellate court in August, giving Qualcomm a reprieve and a chance to prepare new legal arguments.Writing form Canaccord Genuity, 5-star analyst Michael Walkley sees the recent stay as reason for a bullish stance on QCOM. He writes, “The 9th Circuit Court granted a partial stay from Judge Koh’s FTC ruling by placing on hold the provisions requiring Qualcomm to grant patent licenses to rival chip suppliers and end its practice of requiring its chip customers to sign a patent license before purchasing chips.“This stay, along with the recent successful licensing renegotiation with LG Electronics, as evidence Qualcomm’s current licensing business practices could have limited long-term impact from the Judge Koh ruling.”Walkley sets a price target of $87 on QCOM, suggesting a 10% upside to the stock.Like its peers, Qualcomm currently holds a Moderate Buy from the analyst consensus. This is derived from the 6 buys, 9 holds, and 1 sell given the stock in the past 90 days. QCOM shares sell for $78, and, also like its peers, the stock’s recent gains have pushed its share price right to the average price target.Visit TipRanks Analysts’ Top Stocks page, and find out which stock the Street’s top analysts are talking about now.
Qualcomm (NASDAQ:QCOM) spent $1.15 billion to buy out the remainder of its partnership with Japan-based TDK Corporation (OTCMKTS:TTDKY). This takeover probably will not offer an immediate benefit to QCOM stock.Source: Akshdeep Kaur Raked / Shutterstock.com The alliance, valued at a total of $3.1 billion, produced RF front-end filters for 4G or 5G RFFE. Moreover, the company faces three significant threats that likely hold down the value of QCOM. However, this partnership involves one of the three factors that can help to negate these threats, and could even make Qualcomm stock a buy amid intense uncertainty. The Three ThreatsContinuing lawsuits with Apple (NASDAQ:AAPL) has weighed on QCOM stock for years. Just when the company settled with Apple, new legal scrutiny has come as the San Diego-based chipmaker faces a judgment in its lawsuit with the Federal Trade Commission.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor now, Qualcomm has won a partial stay on enforcing the ruling. However, if QCOM were to lose, they would likely have to renegotiate contracts on chipsets, possibly cutting into their profits. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Secondly, China. The People's Republic accounted for around two-thirds of revenue for Qualcomm in 2018. The U.S.-China trade war certainly presents issues. To have so much of one's revenue dependent on geopolitical events beyond its control could significantly hurt revenues.It could also lead to a potential competitor emerging if the dispute ultimately reduces or completely cuts off access in a worst-case scenario.Third, though this attracts surprisingly infrequent mention, the chart on QCOM stock looks ugly. It has traded in a range that has kept it between $45 per share and $90 per share for almost nine years. At the current $78 per share, it trades toward the high end of the range. Also, it has not yet surpassed the $100 per share top it saw in January 2000. Three Reasons to Ignore the ThreatsTo be sure, investors need to consider both the lawsuits and the trading history when considering a position in QCOM. That said, investors should also consider the positives. As discouraging as the problems appear, the reasons to overlook the issues with QCOM may look even more compelling.First, the company's multiple relative to growth. In a recent article, I said QCOM stock had a "low multiple relative to predicted 5G growth."Qualcomm has a forward price-to-earnings (PE) ratio of 18.5. Despite supporting a multiple below S&P 500 averages, the profit picture looks set to improve dramatically. Though profits will fall by 6% this year, a forecasted growth rate of 21.3% in 2020 should mark the beginning of an expected profit boom.Secondly, the company pays a stable, battle-tested dividend. The payout of $2.48 per share yields almost 3.2% at current prices. It has also increased every year since 2011. The increases also came every year despite the long-standing dispute with Apple that kept QCOM stock depressed.The third, and probably most compelling reason involves 5G, which probably ended the legal dispute with Apple. It also probably explains why QCOM bought out the remainder of the TDK partnership.As our own Faisal Humayan first pointed out, industry analysts predict the chipset market that will hit $2.1 billion in 2020 will grow to $23 billion by 2026. That level of growth should break the $90 per share and $100 per share price ceilings on QCOM stock. It could also make up for any doubts about lawsuits or China. The Case for QCOM stockThanks to 5G, the positives outweigh the negatives on QCOM. To be sure, the antitrust inquiry and China trade both pose threats to Qualcomm. These factors remain mainly outside of the company's control. The history of the stock also implies price ceilings at both the $90- and $100-per-share levels.However, thanks to the potential ten-plus fold growth in 5G chipsets, QCOM stock should move higher even if the antitrust suit or China trade policy does not go in their favor.Moreover, QCOM trades at a low valuation relative to profit growth. Once the company begins to sell 5G chipsets in earnest, Qualcomm stock should finally start to create new all-time highs again. Furthermore, the company has proven it can maintain dividend increases even when outside forces create tremendous pressure.When considering both the positives and negatives, QCOM stock remains a buy.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 * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post 3 Legitimate Threats and 3 Reasons to Buy QCOM Stock Anyway appeared first on InvestorPlace.
Shares of mobile chip giant Qualcomm (NASDAQ:QCOM) have done well in 2019. So far this year, QCOM stock is up more than 38%, and it's only September. Even if Qualcomm stock was to trade sideways into the end of the year and finish 2019 up 35%, it will still have been the best year for QCOM stock since 2004.Source: Akshdeep Kaur Raked / Shutterstock.com In other words, Qualcomm stock is hotter in 2019 than it's been in 15 years. Naturally, when a stock is this hot, investors wonder whether the strong performance can continue.I believe there are three main reasons why QCOM stock can continue to trend higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFirst, the fundamentals underlying QCOM stock remain favorable and imply that the shares could exceed $90 within the next 12 months. Second, the outlook of QCOM stock is improving and should provide sufficient fuel to push the stock towards $90. Third, the technicals of Qualcomm stock imply that QCOM is in the first few innings of a multi-quarter uptrend. * 7 Momentum Stocks to Buy On the Dip All told, I think the huge 2019 rally of Qualcomm stock will extend into 2020 and potentially even beyond that. As a result, I will remain bullish on QCOM stock for the foreseeable future. The Fundamentals of Qualcomm Stock Are StrongThe first reason the rally of Qualcomm stock will continue is that the company's fundamentals suggest that the shares should continue to climb.QCOM stock has multiple, positive catalysts. Trade-war tensions are easing. With trade-war tensions falling, the global economy is starting to pick up some steam again. There's also a great deal of fiscal stimulus on the way from the ECB and U.S. Federal Reserve. All of those trends should lift the global semiconductor market.With respect to Qualcomm in particular, the company looks poised to win big over the next few years for two major reasons. First, Apple (NASDAQ:AAPL) is QCOM's customer again, meaning the chip maker will again obtain revenue from iPhone sales.Secondly, every smartphone will be 5G-capable, and that will provide a huge lift for Qualcomm's sales and profits, since Qualcomm is the leading global supplier of 5G chips.At the same time, Qualcomm's biggest risk - legislation which may force it to make its licensing contracts with smartphone companies less favorable - has been put on hold.Sure, QCOM stock appears to already reflect all this good stuff. The stock does trade at nearly 23-times its forward earnings, versus the semiconductor sector's average forward earnings multiple of about 15.But over the next few years, QCOM should grow rapidly. According to YCharts, its revenues are expected to rise 15% next year and 20% the year after that, while its EBITDA margin is poised to climb about five percentage points over the next two years. Its earnings per share, meanwhile, is expected to jump 24% next year, and 40% the year after that to roughly $6.If QCOM's EPS reaches $6 in fiscal 2021 and its price-earnings multiple is 25, which is average for semiconductor stocks, QCOM stock price would be $90. The Outlook Is ImprovingThe second main reason that the rally of Qualcomm stock will probably continue is that its improving outlook will drive QCOM stock towards $90 over the next few quarters.For the longest time, Qualcomm stock did nothing. Now it's having its best year in 15 years. From a psychological standpoint, that's meaningful. This large, powerful company didn't grow much for a long time because of the stagnation of the smartphone market and its disputes with Apple.Now the smartphone market is set for meaningful growth again, thanks to the launch of 5G, while QCOM's legal disputes with Apple are over. So the two things which have kept QCOM stock stuck in neutral for the past few years are in the rear-view mirror.Investors should want to continue to buy QCOM stock to benefit from its improved outlook. A stock that went nowhere for several years is now breaking out ahead of what should be the company's best two years in recent memory. That's compelling. The Technicals of QCOM Show a New UptrendThe third main reason that the rally of Qualcomm stock will continue is because its technicals look different this time, compared to those of its prior, short-lived rallies over the past five years. Click to EnlargeSpecifically, in each of Qualcomm's rallies over the past five years, the 50-day moving average broke above the 200-day moving average. But, within a few months of that golden-cross formation, the 50-day moving average started sloping downward.That dynamic isn't playing out this time around.A few months ago, the 50-day moving average of Qualcomm stock broke above its 200-day moving average. As of yesterday, the 50-day moving average was continuing to slope upward. That's substantial from a technical perspective. It means that this breakout of QCOM stock may be the real deal and not just a head fake like its prior rallies. The Bottom Line on QCOM StockI've liked Qualcomm stock for most of 2019, and continue to like it now. The fundamentals, outlook, and technicals are all giving "buy" signs, and when that happens, what comes next is usually more gains.QCOM stock shouldn't be an exception to this pattern. I fully expect its favorable fundamentals, outlook, and technicals to keep QCOM stock in rally mode for the foreseeable future.As of this writing, Luke Lango was long QCOM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post 3 Reasons Qualcomm Stock Can Go Higher appeared first on InvestorPlace.
Unsurprisingly, technology firm Qualcomm (NASDAQ:QCOM) is enjoy a strong year in 2019. After years of ugly legal battles with Apple (NASDAQ:AAPL) over patent disputes, the two giants settled their differences. Immediately, QCOM stock shot to the moon.Source: jejim / Shutterstock.com Of course, shares have settled down into their usual cadence, ebbing and flowing based on the news or interpretations of earnings reports. Still, Qualcomm stock is up 37% for the year. Outside of an extremely bearish news item, QCOM seems assured of closing out 2019 deep in the black.That said, some of the positive momentum appears to be waning. For instance, QCOM stock recently incurred three negative sessions in a row. And yesterday, Sept. 16, was particularly interesting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn this day, Qualcomm announced that it would buy the rest of its interest in RF360 Holdings, a joint venture between QCOM and TDK (OTCMKTS:TTDKY). RF360 specializes in RF front-end filters, which are necessary components in rolling out the 5G network. * 7 Tech Stocks You Should Avoid Now According to a statement from Qualcomm, the acquisition enables the organization to "deliver a truly complete solution" for mobile platforms. Theoretically, the news should lift Qualcomm stock. Thanks to rival Intel's (NASDAQ:INTC) bungled attempt at developing 5G modems, QCOM enjoys significant breathing room.Unfortunately, that's not how the markets viewed things. Instead, QCOM stock slipped about 0.5% in the Monday session.This is hardly a time to panic. Nevertheless, it is interesting that despite having a clear advantage in the 5G arena, Qualcomm stock has not been able to capitalize on it recently. Still, I wouldn't give up on this compelling tech opportunity. Nearer-Term Concerns Conflict with Longer-Term NarrativeJust as it's not surprising that QCOM stock is having an outstanding year overall, it's also no mystery why shares have recently slowed.Primarily, the ongoing U.S.-China trade war puts a damper on most industries. More worryingly, some economic experts have voiced their concerns that the trade war could drag on for years. Such a scenario is especially problematic for Qualcomm stock. The San Diego-headquartered tech firm generates about 65% of its revenue from China.Moreover, troubles in Europe, such as Brexit and Germany teetering toward recession, weigh on global markets. Logically, if Europe's biggest economic powers hit choppy waters, it doesn't bode well for the rest of the continent. Also, such a negative development hurts broader consumer demand.After all, 5G-ready phones are rare. And if you really want one, you're going to have to pay a pretty penny. According to CNBC, you're looking at $1,300 for a Samsung Galaxy S10+ 5G, which runs on Qualcomm's current Snapdragon 8 platform.Moreover, the 5G rollout has only occurred in limited locations. Thus, if you're not in one of those areas, you're out of luck. In the here and now, these nearer-term concerns weigh on QCOM stock.That said, speculators may want to advantage these lulls in the pricing dynamics for Qualcomm stock. The tech firm is hard at work in not only driving innovation, but also toward implementing cost efficiencies. Earlier this month, management announced that they're developing 5G platforms for less expensive phones.Just as importantly, this news item coincides with telecom giants AT&T (NYSE:T) and Verizon (NYSE:VZ) committing to developing 5G infrastructures in dozens of major U.S. cities. Thus, the tech-based fundamentals for QCOM stock are lagging the underlying infrastructure. But by the end of next year, this situation should resolve itself. Geopolitics Favor QCOM StockUnderstandably, many investors are leery about tech names. That sentiment would only be amplified during a recession.But even here, I think Qualcomm stock has some safety measures. Amid the natural capitalistic drive to develop 5G technologies, a geopolitical motivation exists as well. Like it or not, we're embroiled in a tech cold war with our adversaries, primarily Russia and China.Everyone is seeking to gain an edge here. Tomorrow's wars may not be kinetic but instead digital. As such, America's brightest tech firms dominating the landscape isn't just a matter of pride; it's also a matter of national security.Thus, when push comes to shove, I see federal oversight and regulation as less of a concern. While enforcing privacy and antitrust laws are important, they pale in comparison to potentially losing the tech cold war. It's just another factor to keep in mind if you're considering QCOM stock.As of this writing, Josh Enomoto is long AT&T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Be Patient When Considering Qualcomm Stock appeared first on InvestorPlace.
The acquisition of RF360 Holdings allows Qualcomm (QCOM) to provide its customers with a complete end-to-end solution from modem to antenna.
Qualcomm (NASDAQ:QCOM) shareholders can't complain about the performance of Qualcomm stock so far in 2019. Up 41% year to date through Sept. 13, including dividends, investors are likely taking some profits. Source: jejim / Shutterstock.com If you are, congrats on the gains. If not, here are three reasons why Qualcomm stock remains an excellent long-term buy. 1\. Free Cash Flow GenerationOver the summer, I had the opportunity to write about QCOM stock on two occasions in June and July. In the first article in June, I highlighted the company's strong free cash flow generation. InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs a result of its trailing 12-month free cash flow, I felt that it was an $80 stock, not a $60 stock. At the time it was trading just under $70. As I write this, Qualcomm is trading around $78, up more than 12% over the past 90 days. * 7 Tech Stocks You Should Avoid Now Its TTM free cash flow was $4.9 billion, considerably higher than the $2.1 billion when I wrote about the company in June. That's due to a $3.0 billion income-tax benefit through the first nine months of the fiscal year. InvestorPlace contributor Mark Hake recently suggested that Qualcomm will generate more than $7 billion in free cash flow in 2019, reminding investors that its free cash flow yield (FCF) of 7.5% is three times Amazon's (NASDAQ:AMZN) FCF yield of 2.5%. Free cash flow generation and FCF growth are the biggest drivers of higher stock prices. Although a big chunk of Qualcomm's fiscal 2019 free cash flow is a result of a considerable tax benefit, the company consistently generates more than $5 billion in free cash flow with or without those one-time benefits. This reason alone it's worth owning QCOM for the long haul. 2\. Great DividendQualcomm currently yields 3.2%, a fantastic amount of income for a tech company. InvestorPlace's Luke Lango recently called it a stable dividend stock to buy as fixed income possibilities vanish. However, not only did Lango promote the company's attractiveness as an income-generating stock, but he also suggested that it's on the cusp of a multi-year growth spurt, which would also deliver significant capital appreciation. "Not only does QCOM stock have a compelling multi-year bull thesis, but the stock is also paying investors to buy into that compelling bull thesis. It's a win-win situation that ultimately gives QCOM the nod as a stable dividend stock to buy here and now," he wrote. Not only did Qualcomm get as much as $4.7 billion as part of its settlement with Apple (NASDAQ:AAPL), but it also gets the maker of iPhones as a customer for several more years, which itself will generate future revenues. To be paid to go along for the ride is great news if you're a dividend income investor. 3\. 5G Will Be Good for QCOM StockQualcomm just announced that it was buying out the rest of RF360, the joint venture between it and TDK (OTCMKTS:TTDKY), a partnership set up to strengthen Qualcomm's RF business and help it transition to 5G. The company ultimately paid $3.1 billion, which includes the remaining $1.15 billion interest it's bought from TDK."Qualcomm Technologies' second-generation RFFE solutions for its 5G portfolio will further enable OEM customers to design thin, high-performance, battery-efficient 5G multimode devices at scale and on time," the company stated in its press release. As InvestorPlace contributor Josh Enomoto and Faisal Humayun have argued in recent articles, Qualcomm is ready to benefit from the move to 5G in 2020. Faisal points out that the global 5G chipset market is expected to grow from $2.1 billion in 2020 to $23 billion in 2026, a compound annual growth rate of 61%. Enomoto wrote that Qualcomm's headstart when it comes to 5G gives it a front-row seat to the changes taking place in the telecom industry -- a position that will ultimately generate billions in profits for Qualcomm shareholders. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post 3 Reasons QCOM Stock Is a Great Buy on the Recent Dip appeared first on InvestorPlace.
The Wall Street conference calendar is heating up, and Deutsche Bank just completed its annual DB Tech Conference in Las Vegas.At the conference, 5-star Deutsche Bank analyst Ross Seymore met Qualcomm (QCOM) president Cristiano Amon to discuss the company’s ongoing legal woes, market dynamics, and most importantly, the company's vision for the future of 5G.Overall, Seymore remains sidelined on QCOM stock with a 'hold' rating and $75 price target, which implies a slight downside to Monday's $78.04 close.As always, we like to give credit where credit is due. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, Seymore has earned a yearly average return of 26.6% with an 82% success rate. Notably, Seymore is ranked 17 out of 5,551 analysts.Qualcomm has recently won a partial stay against the enforcement of a sweeping antitrust ruling in a lawsuit brought by the FTC. Oral arguments are scheduled for January, with potential resolution in the Ninth Circuit by mid 2020, though "Court timelines could change at anytime," Seymore noted. On the recent 5-year direct worldwide patent license agreement signed with LGE, Seymore says "the company pointed to the new royalty-bearing agreement as a proofpoint to the stability of its QTL business."Apart from the legal matters, Qualcomm stock has been hit by macro/trade headwinds, channel inventory reduction (especially in China), lengthening replacement cycles in a mature market, and consumer pause ahead of 5G device launches. Seymore points out that "Qualcomm expects the softness to remain through the rest of the calendar year, with both revenue and earnings to stay in a similar range in 2H CY19 (DBe F4Q19/F1Q20 revs of $4.70b/$4.69b, PF EPS of $0.71/$0.72 respectively)."Furthermore, by the first calendar quarter of 2020, the company anticipates reaching an inflection point with the launch of 5G technology. The company sees 5G as a significant opportunity for Qualcomm to grow its chip business amidst economic concerns and slowdown in sales. Seymore commented, "We continue to believe QCOM is well positioned for a leadership position in 5G on increasing dollar content opportunity (~1.5x 4G levels) and the co's early traction on 5G design wins (150+ launched or in development) with a high RF-attach rate."All in all, the Street largely seems to echo Seymore's neutral sentiment. Out of 16 analysts polled by TipRanks in the last 3 months, 6 are bullish on QCOM stock, 9 remain sidelined, and only one is bearish on the stock. The average target price among these analysts stands at $78.93, suggesting the stock price is fairly valued with limited upside ahead.
QUALCOMM, Inc. (NASDAQ: QCOM ) said Monday it has completed the acquisition of the remaining interest in RF360 Holdings Singapore Pte. Ltd., a joint venture with TDK Corporation. TDK Electronics' remaining ...
Qualcomm Inc. said Monday that it was buying the remaining interest in RF360 Holdings Singapore Pte. Ltd., which makes RF frong-end filters. RF360 is a joint venture with Tokyo-based TDK Corp. , with TDK's remaining interest valued at $1.15 billion in August. Qualcomm's stock slipped 0.9% in premarket trading. Qualcomm said the total purchase price, including the initial investment, payments to TDK and development obligations will be about $3.1 billion. Qualcomm said the acquisition strengthens its RF business and helps support the transition to 5G. "Our goal in the formation of this joint venture was to enhance Qualcomm Technologies' front-end solutions to enable us to deliver a truly complete solution to the mobile device ecosystem, and we have done exactly that," said Qualcomm President Cristiano Amon. Qualcomm's stock has soared 37.8% year to date through Friday, while the S&P 500 has gained 20.0%.
(Bloomberg) -- Qualcomm Inc. paid $1.15 billion to buy the rest of a partnership it had with Japan’s TDK Corp. The deal will help Qualcomm sell more chips for smartphones supporting the latest 5G wireless standard, the U.S. company said.The two firms set up their RF360 Holdings partnership in 2016 to design radio frequency components. Qualcomm contributed cash and TDK spun off its design and manufacturing assets into the endeavor, which was 51% owned by the San Diego-based company.Radio frequency components help convert radio waves into signals that semiconductors can turn into data. They are a crucial part of smartphones, and an important ingredient in a soup of chips and software that Qualcomm is concocting for makers of new 5G handsets.Qualcomm is already the biggest maker of modems for phones and also provides many of the processors that run software in handsets. It’s trying to combine all these elements into a single offering for smartphone makers. Taking control of the RF joint venture will make the company a bigger competitor to Skyworks Solutions Inc., Qorvo Inc., Broadcom Inc. and other industry players.Increasing mobile data speeds partly come from combining more bands of radio frequency. Modern smartphones access more than 50 bands, up from three in early data-capable phones more than a decade ago. That requires more complex RF components.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Alistair Barr, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
-- Strengthens RF Business to Drive 5G Era and Paves Way for Future Growth -- SAN DIEGO , Sept. 16, 2019 /PRNewswire/ -- Qualcomm Incorporated (NASDAQ: QCOM) announced a significant milestone in its 5G ...
Asia’s richest man Mukesh Ambani changed India's mobile market forever when he launched the operator Reliance Jio three years ago. India’s fragmented broadband market seems ripe for the taking. Reliance Jio plans to compete with existing providers such as Bharti Airtel and sign up new users, with an initial target of 20m homes and 15m businesses.
Income in the bond market is rapidly disappearing, and that's a weird concept to try and wrap your head around.For decades -- centuries, even -- investors around the world have bought fixed-income instruments for relatively risk-free income. The concept is simple. You give money to a government or corporate entity who turns around and pays you interest for lending that money to compensate for risk and time.But this simple concept has been flipped on its head recently. Specifically, the "interest" part of the above fixed-income equation has gone out the window. Consider the following:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10-year Treasury yield is flirting with all-time lows around 1.8%. * The 30-year Treasury yield has plunged to all-time lows around 2.2%. * About one-third of tradeable bonds around the world now have negative yields, amounting to $17 trillion in negative-yielding debt. * The yield curves are entirely negative in countries like Germany, Denmark and the Netherlands.In other words, across the world, the income part of the fixed-income equation is rapidly disappearing. Weird, right?Despite this, U.S. equities are still giving investors income. That is, the S&P 500's dividend yield presently hovers around 2% -- significantly above all-time low levels (roughly 1% in 2000) and also on the upper end of where the S&P 500 dividend yield has hovered over the past 20 years.Big picture, then, while the fixed income market is suffering from disappearing income, stocks are still paying good income. * 7 Discount Retail Stocks to Buy for a Recession The implication? Buy stable dividend stocks which pay more than any other relatively risk-free bond in the world will. As investors grow tired of not even beating inflation by buying a 10-year Treasury note, they will inevitably pile into stocks which: 1) have much higher yields, and 2) have a history of steady and consistent dividend hikes.Without further ado, let's take a look at five dividend stocks that fit this description. Dividend Stocks to Buy: AT&T (T)Source: Jonathan Weiss / Shutterstock.com Dividend Yield: 5.3%Dividend History: The dividend has consistently increased over the past 34 years.At the top of this list, we have a stock which many consider the blue-chip dividend king: telecom giant AT&T (NYSE:T).AT&T has everything investors are looking for in a stable, income-paying stock. Big yield? Check. The stock yields 5.3%. History of dividend hikes? Check. AT&T has consistently hiked its dividend over the past three decades.Stable operations? Check. AT&T provides telecom services which U.S. consumers have become exceptionally dependent on -- indeed, the internet and wireless services which AT&T provides may be the most important utilities outside of water, food and electricity. Healthy catalysts on the horizon? Also, check. Next year, AT&T: 1) is launching new streaming services which should help offset cord-cutting weakness, and 2) will benefit from the mainstream and widespread deployment of 5G infrastructure and devices.AT&T stock is the quintessential stable dividend stock to buy at the current moment. American Electric Power (AEP)Source: Casimiro PT / Shutterstock.com Dividend Yield: 2.9%Dividend History: The dividend has consistently increased over the past six years.Next up, we have a utility giant that is best known for its stability and resiliency: electricity services provider American Electric Power (NYSE:AEP).Relative to other "big dividend stocks," AEP's yield isn't that big. It sits at just 2.9%. But, there are three things to note here. First, that 2.9% yield still smashes the 1.8% 10-year Treasury yield. Two, American Electric Power has a long track record of consistent dividend hikes that dates back at least six years, a stretch during which the dividend increased 100%. Three, American Electric Power has an equally long track record of consistent and stable revenue and profit growth, which has powered consistent gains in AEP stock over the past decade. * 10 Battered Tech Stocks to Buy Now As such, what AEP lacks in yield, it makes up for in operational consistency and stability. Consequently, the best way to look at AEP stock is as the best "stable" stock to buy. It just so happens to yield almost 3%, too, which is an added bonus. Qualcomm (QCOM)Source: JHVEPhoto / Shutterstock.com Dividend Yield: 3.1%Dividend History: The dividend has consistently increased over the past eight years.Third, we have a global chip giant that appears to be on the verge of finding its winning stride again -- Qualcomm (NASDAQ:QCOM).Unlike AT&T and American Electric Power, Qualcomm is not traditionally seen as an icon of stability. Just look at a five-year chart of QCOM stock to see why. But, most of the turbulence in QCOM stock over the past five years has been driven by operational noise -- namely, a big legal battle with their largest customer, Apple (NASDAQ:AAPL). That legal battle is now over, and it ended in a favorable outcome for Qualcomm.Consequently, looking in the rear-view mirror here is the wrong way to look at QCOM stock. It's not about what has happened. It's about what will happen. What will happen is good stuff. Qualcomm has locked in Apple as a customer for the next several years. At the same time, 5G phones are launching next year, and it appears pretty much every smartphone provider is leaning into Qualcomm to provide the infrastructure for those 5G phones. As such, Qualcomm will find itself as a big beneficiary of the 5G tailwind. This tailwind should last for several years, meaning that Qualcomm should be in winning stride for the foreseeable future.Ahead of the company regaining its winning stride, the stock still yields an impressive 3.1%. Thus, not only does QCOM stock have a compelling multi-year bull thesis, but the stock is also paying investors to buy into that compelling bull thesis. It's a win-win situation that ultimately gives QCOM the nod as a stable dividend stock to buy here and now. CVS (CVS)Source: Roman Tiraspolsky / Shutterstock.com Dividend Yield: 3.1%Dividend History: CVS last increased its dividend payout in 2017.Fourth, we have an undervalued, stable stock that is in the midst of a potentially huge breakout -- retail pharmacy giant CVS (NYSE:CVS).It's been a rough few years for CVS stock. On the retail pharmacy side, increased competition has simultaneously pressured current sales trends and depressed investor sentiment regarding future sales trends. On the pharmacy benefit manager side, legislation has similarly pressured sales and profits.Consequently, by mid-2019, CVS stock had dropped to $50 -- the stock's lowest level since early 2013 -- and was trading at under 8x forward earnings.Since then, retail sales trends have improved as CVS has refreshed stores and expanded omni-channel capabilities to overstep the competition. Such improvements should persist as the company expands a local healthcare program which has potential to dramatically improve core operational performance trends. At the same time, the White House has scrapped a bill which would've been disastrous for PBMs. And now the outlook on that side of the business is also improving significantly. * 10 Stocks to Sell in Market-Cursed September In response to these positive developments, CVS stock has rallied nearly 20% over the past three months. This rally is just getting started. The stock is still cheap, the yield is still big, the outlook is still improving and the upward momentum is very real. As such, CVS stock appears to be in the first few innings of a huge breakout. Target (TGT)Source: jejim / Shutterstock.com Yield: 2.4%Dividend History: The dividend has consistently increased over the past 51 years.Last, but not least, we have a blue-chip retail giant that is absolutely on fire today: Target (NYSE:TGT).The story at Target is pretty simple. A few years back, the mainstream emergence and adoption of e-commerce caused a traffic exodus out of Target stores. For a short period of time, Target struggled. Then, Target adapted. It built out a big e-commerce operation, refreshed stores to be more tech-savvy, built out omni-channel capabilities, expanded in-store and online offerings and much more.In a nutshell, Target became the quintessential, modern omni-channel retailer that leveraged technology to optimize customer convenience in every way possible.It worked. Over the past few years, Target has fired off its best numbers in a decade. We are talking decade-best sales growth, comparable sales growth, online sales growth and traffic growth. At the same time, margins have been largely stable, so profit growth has been equally robust. TGT stock has naturally rallied big in response to this operational excellence.This rally is far from over. Target has optimally positioned itself so that -- so long as the U.S. consumer remains healthy -- Target will continue to report impressive numbers. The stock isn't terribly expensive at all (17-times forward earnings), the yield remains big (2.4%) and TGT stock has very healthy upward momentum.TGT stock is a stable dividend stock which should stay in rally mode for the foreseeable future.As of this writing, Luke Lango was long T, QCOM, and CVS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 5 Stable Dividend Stocks to Buy as Fixed Income Vanishes appeared first on InvestorPlace.
(Bloomberg) -- The U.S. semiconductor industry urged President Donald Trump to make good on his promise to ease the ban on sales to China’s Huawei Technologies Co.“We encourage prompt action to issue approvals for sales that do not implicate national security concerns, particularly where there is foreign availability for competing products,” the Semiconductor Industry Association said in a letter dated Sept. 11 to Commerce Secretary Wilbur Ross, which was seen by Bloomberg News. Intel Corp., Qualcomm Inc. and Texas Instruments Inc. and are among members of the association.China’s largest technology company has found itself at the center of a trade conflict between Beijing and Washington that’s weighing on the global economy.After meeting with Chinese President Xi Jinping in late June, Trump said he would loosen restrictions on Huawei export licenses and that Beijing had agreed to buy more U.S. farming goods. But neither side has followed through on those pledges, and the U.S. has since increased tariffs on Chinese goods, sparking retaliation by China.In July, Trump met with chief executives from major technology companies including Micron Technology Inc. and Alphabet Inc.’s Google who asked for a timely decision on the resumption of sales to Huawei.Trade BlacklistAmerican businesses require a special license to supply goods to Huawei after the U.S. added the Chinese company to a trade blacklist in May over national-security concerns.Huawei is the third-largest buyer globally of U.S. semiconductors, the association said in the letter. Sales to Huawei of “non-sensitive” products ranging from mobile phones to smart-watches “do not implicate national security concerns,” the group said. The ban is making it more difficult for U.S. firms to compete against foreign rivals that don’t face the same restrictions, according to the letter.Delays in awarding the special licenses could weaken the U.S. semiconductor industry because it will lead to lower profits, forcing some companies to cut research and eroding their dominance in the global market, the association said.To contact the reporters on this story: Jenny Leonard in Washington at email@example.com;Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Brendan Murray at email@example.com, Sarah McGregor, Robert JamesonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Former Homeland Security Secretary Tom Ridge called on Trump not to use Chinese telecommunications giant Huawei as leverage in broader trade negotiations with China, saying national security should be a “non-negotiable item.”
While Qualcomm (QCOM) is planning to develop cheap 5G chipsets for the masses, CenturyLink (CTL) aims to strengthen its position in the content delivery network with the acquisition of Steamroot.
Yesterday, President Trump tweeted that he would delay the upcoming hike on the China tariffs. US semiconductor companies are sensitive to trade wars.
The long-awaited Micron (NASDAQ:MU) recovery appears to have finally arrived. Micron stock and profits took a beating last year because of a combination of the decline in crypto and an emerging trade war.Source: Charles Knowles / Shutterstock.com However, new technology has begun to drive what looks like a permanent demand increase in memory chips.Moreover, both management sentiment and analyst estimates have shown beginning signs of a recovery. MU stock has recovered as a result. With this uptick, the question becomes when to buy Micron stock, not whether to buy.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Micron Will Head HigherAll of us make bad decisions on stocks from time to time. Unfortunately, my wrong call caused me to miss the uptick in MU stock.Three days after saying that the trade war would keep MU "suppressed in the short term," the company released a report that blew my short-term investment thesis out of the water. * 10 Stocks to Sell in Market-Cursed September Management gave a presentation at a technology investment forum on Aug. 12. There, they announced that while inventories remained high, cloud and graphics have meaningfully increased demand for memory chips.This news became the catalyst that took the Micron stock price from the low-$40s per share range to over $50 per share today. I have described MU stock as a different breed from chip stocks such as Intel (NASDAQ:INTC), AMD (NASDAQ:AMD), or Qualcomm (NASDAQ:QCOM). MU stock remains a proxy for memory prices, and the recent uptick again shows that. MU Stock and Long-Term ProspectsAdmittedly, even as the stock fell from the low-$60s per share range to below $30 per share, the long-term outlook has remained strong. Artificial intelligence (AI), self-driving cars, the Internet of Things (IoT), and 5G will drive a permanent increase in demand for memory chips.Moreover, bitcoin again sells for over $10,000. The decline of crypto played a significant role in the falling demand for memory. Hence, it stands to reason that a price recovery should lead to at least a partial revival in demand for memory as crypto mining again becomes more economical.Furthermore, valuations remain reasonable. MU currently supports a forward price-to-earnings (PE) ratio of 19.8 and a trailing PE of around 5.9. Granted, with the rock-bottom PE ratio Micron has supported, the forward PE may appear pricey. The average PE ratio over the last five years has stood at only about 12.8.However, over the last month, Micron received something it had not seen in some time--rising earnings estimates. After falling for more than a year, earnings estimates for this year now stands at $6.23 per share. For fiscal 2020, they have risen to $2.56 per share. I expect the 2020 forecast will keep rising if the demand estimates hold. Watch out for the Short TermHence, I expect MU stock will keep moving higher from here over time. The question becomes what it will do in the short term. I made my wrong call early last month at around $41 per share.Now that MU has moved past $50, it has seen an increase of more than 20% in just over a month. I do not think it will return to the low $40s per share range anytime soon. However, this relatively quick rise could bring some profit-taking and a partial pullback.Moreover, investors should note that trade talks have resumed. Negotiations do not constitute an agreement. Admittedly, they could lead to one at any time. In that case, I think MU stock spikes higher from here.However, we have been on the cusp of an agreement more than once only to see negotiations fall apart. This sent MU and other stocks down before. It would likely do so again. I see such an action as the ideal time to buy Micron stock. The Bottom Line on Micron StockRising demand has helped to revive MU stock. Now, investors need to know when to buy. A management presentation pointing to increasing demand began a surge in MU that would take the equity more than 20% higher over the next month. Analyst revisions and better prospects for a trade deal almost helped Micron.However, the surge in MU stock could lead to some profit-taking. Also, it remains possible that trade talks will deteriorate. For these reasons, Micron stock could face a short-term pullback.Still, even if sentiment turns bearish for a time, the long-term prospects for MU stock have begun to bear fruit. This should only accelerate as consumers start to buy 5G-compatible smartphones.Investors who want to protect themselves from a short-term pullback should either buy in slowly or wait. However, the recovery in the chip sector has begun in earnest. This by itself makes MU stock a buy, if not now, then soon.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 * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Micron Stock Is Poised to Surge, but Be Careful in the Short Term appeared first on InvestorPlace.