QCOM - QUALCOMM Incorporated
| Previous Close | 89.65 |
| Open | 87.30 |
| Bid | 87.98 x 1200 |
| Ask | 87.99 x 800 |
| Day's Range | 86.45 - 88.22 |
| 52 Week Range | 49.10 - 96.17 |
| Volume | 2,779,373 |
| Avg. Volume | 9,601,831 |
| Market Cap | 100.07B |
| Beta (5Y Monthly) | 1.64 |
| PE Ratio (TTM) | 24.40 |
| EPS (TTM) | 3.59 |
| Earnings Date | Feb 04, 2020 |
| Forward Dividend & Yield | 2.48 (2.77%) |
| Ex-Dividend Date | Mar 03, 2020 |
| 1y Target Est | 99.25 |
Reuters VideosWall Street hits new highs
The Dow eked out a gain Friday to stretch its winning streak to a fifth day. Encouraging economic data from the U.S. and China lifted investor sentiment. Homebuilding in the U.S. surged to a 13-year high in December, and China's industrial output, investment and retail sales rose more than expected last month. The data helped drive the three indexes to new highs. The S&P 500 up nearly four-tenths percent. For the week, the indexes rose roughly 2%. Mercadien Asset Management president, Ken Kamen: SOUNDBITE: MERCADIEN ASSET MANAGEMENT PRESIDENT, KEN KAMEN (ENGLISH) SAYING: "The consumer's very strong. So I think there's a lot of reason for optimism, and the markets' kind of fueling that." Shares of China sensitive chipmaker Qualcomm shot higher. Citigroup upgraded the chipmaker to "buy" from "neutral," citing among other factors, the likelihood that Qualcomm will gain market share in China with its 5G chipsets. Financial stocks including JPMorgan and Citizens Financial were among the rally leaders. A 61% surge in quarterly profit at the custodian bank, State Street, spurred the buying. Energy stocks were the day's biggest decliners. Shares of oilfield service provider Schlumberger slid even though its adjusted earnings beat Wall Street's targets The markets will be closed Monday for the Martin Luther King holiday.
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- InvestorPlace
Qualcomm Stock Could Hit $100, But It Isn’t Risk-Free
Like many of its chip peers, Qualcomm (NASDAQ:QCOM) has been on fire. Shares hit new 52-week highs a few trading sessions ago and Qualcomm stock remains in demand among investors.Source: testing / Shutterstock.com It helps that the company has several long-term catalysts in play, while the overall market continues to rally, rally, rally. And in the sector, chips and semiconductors especially are in "surge mode." Whether that's Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC) or others, the group simply continues to climb.Let's take a closer look at QCOM.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Valuing Qualcomm StockEarlier this month, we asked if QCOM is setting up for a banner 12 months. The short answer? Yes. The long answer underscores a bit more growth. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Qualcomm is in the beginning of its fiscal year for 2020, but has yet to report the first quarter results. For the year, analysts expect the company to earn $4.19 per share, leaving QCOM trading at 22 times earnings, but it's not as expensive on a forward basis.While current predictions call for 18.4% earnings growth this year, estimates for 2021 call for an incredible acceleration to 45.6% growth, generating earnings of $6.10 per share. That leaves Qualcomm stock trading at just 15 times its 2021 earnings.As for revenue, estimates call for 13.1% growth this year and an acceleration up to 23% growth in fiscal 2021. The numbers here are astounding really, and Qualcomm investors may be set to be major beneficiaries.As Citi analysts recently argued, the company has big exposure to the coming wave of 5G. As Apple (NASDAQ:AAPL), Samsung and other companies shift to 5G service, it translates to top- and bottom-line growth for QCOM. That's why analysts are so bullish on the coming 24 months of business. Not Without RisksQualcomm stock trades at a reasonable valuation, has big-time growth estimates over the next two years and pays a 2.5% dividend yield. It's well-positioned in the coming 5G cycle and has solid financials.But none of that means it comes without risk.First, the company may face regulatory hurdles. While the Trump administration recently came to its defense, the FTC has been hitting Qualcomm hard. While the situation could certainly improve, regulatory risks are higher for Qualcomm stock than many others.Furthermore, it was once in a legal spat with Apple, but then the tables suddenly turned. Apple paid Qualcomm billions to settle and dropped all of its lawsuits, as the company instead wanted to clear the air and do business. However, Apple has also bought Intel's modem business for $1 billion.While this is not a short-term risk, the long-term risk is that Apple begins developing its own chips and eventually cuts Qualcomm down or out. That leaves some long-term questions out in the open, but for now, Apple's ready to play ball, which will lead to big business for the company. Still, this is a situation to monitor going forward.Lastly, there's simply the risk that analysts and investors alike are too bullish on 5G and QCOM's future growth. If the company has to lower expectations or if consensus estimates prove too high, particularly the out years (2021), then Qualcomm shares could take some heat. Trading QCOM Stock Click to Enlarge Source: Chart courtesy of StockCharts.comDespite some of these risks, I'm still looking at Qualcomm as one to buy. The reason is simple. The fundamentals -- for now -- are attractive, and so is the chart. When the technicals and fundamentals align, it creates a very good situation for investors.Earlier in the month, QCOM dipped down to the 50-day moving average, but was instantly gobbled up by investors. The ensuing rally sent shares above $92.50 resistance to new 52-week highs.While bulls may buy the dip on a pullback to the 20-day moving average, I'd like a correction down to the 50-day moving average and even further down to uptrend support (blue line). For now, those deeper dips have been the optimal buy spot for active bulls.If it fails, the $80 level and the 200-day moving average are on the table, whichever comes first. Over the $96.17 high and $100 is possible for Qualcomm stock.Bret Kenwell is the manager and author of Future Blue Chips and on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post Qualcomm Stock Could Hit $100, But It Isn't Risk-Free appeared first on InvestorPlace.
- InvestorPlace
With 5G Already Priced in, You Can Do Better Than Qualcomm Stock
Shares of Qualcomm (NASDAQ:QCOM) have been on a steady uptrend over the past twelve months, mostly because investors have expressed optimism about the smartphone chipmaker's ability to capitalize on the forthcoming 5G boom in 2020 and beyond. In 2019, Qualcomm stock rose 55%, marking the stock's best annual return since 2004.Source: jejim / Shutterstock.com Now, in 2020, shares are up another 5% as multiple Wall Street analysts have jumped on the bandwagon. Citi, Mizuho, Bank of America, and Canaccord Genuity are among of handful of sell-side firms that have sounded a bullish tone. Shares have risen in response.But, here's the catch: all those firms, save Canaccord, have a price target of $110 or less. Indeed, the consensus sell-side price target on QCOM is $98 according to YCharts, and $100 according to TipRanks.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's just 7.5% above where shares today. Thus, while Wall Street is saying "Buy" Qualcomm, they are also saying that further upside potential over the next twelve months is limited. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy I couldn't agree more. Qualcomm is positioned to have a big 2020 through 2024/25 because of 5G tailwinds, but a lot of that growth is already priced in. Sure, the stock won't fall against this favorable growth backdrop. But, it won't roar higher, either, because the valuation is already full.As such, Qualcomm is a fine investment for 2020. But not a great one. You'll get 5% to 10% share price appreciation plus a 2.5% yield. That's good, but nothing to write home about. QCOM Stock Will Rise in 2020Qualcomm stock will rise in 2020 because the company will gain operational momentum thanks to rising 5G tailwinds.Long story short, Qualcomm is at the epicenter of all things smartphones. They make the chips that power smartphones, and they are the best in the world at doing that. Just ask Apple (NASDAQ:AAPL), who tried hard to fight against Qualcomm's smartphone chip business, but ultimately caved because they realized they couldn't do a 5G iPhone without them.That positions the company for significant revenue growth, margin expansion, and profit growth over the next few years as 5G smartphone technology rolls out globally.All of these new 5G smartphones and devices are going to need new 5G chips to power them. Qualcomm makes those chips. Demand for Qualcomm products will consequently soar over the next few years, which will push both revenues higher (they will sell more chips) and margins higher (they will sell these chips at more favorable price points).Big profit growth will follow.Against this backdrop where Qualcomm's revenues, margins, and profits are all moving higher, it's tough to see Qualcomm stock not going higher. That's especially true since it trades at a still-reasonable 21-times forward earnings multiple.Sure, Qualcomm could falter if the 5G boom doesn't live up to the hype. But it will. 5G is going to fundamentally change the internet communications standard for billions of internet-connected products and services around the globe. So, assuming the 5G boom doesn't disappoint, then the stock will rise in 2020. But Not by MuchThe only problem with Qualcomm is that, because everyone already knows 5G is going to be a huge tailwind for the company, upside from this tailwind has already been fully priced in.QCOM trades at 21-times forward earnings. Sure, that's not a huge multiple. But, it's a big multiple for Qualcomm historically speaking (five-year-average forward multiple of 14) and it's big for the semiconductor industry (average forward multiple in that group is 18). Clearly, big growth is priced in.How much upside is left? Not much.My long term model on Qualcomm, which assumes double-digit revenue growth going forward as well as fairly sizable margin expansion, calls for the company to earn $8 per share in fiscal 2025. At that point in time, 5G hype will have cooled. Qualcomm stock will trade at a more reasonable semiconductor-average forward earnings multiple of 18. Assuming so, that implies a $144 price target for QCOM by 2024. Discounted back by 10% per year, that equates to a 2020 price target of about $100.That's about 7.5% above where shares trade today. Plus, you got the 2.5% dividend yield. Net-net, you're talking about a 10% total return potential at current levels.That's good. But not great. Bottom Line on Qualcomm StockQualcomm is a good investment for 2020. But not a great one. Shares will trend higher amid the 5G boom, but the magnitude of gains will be limited by an extended valuation.As of this writing, Luke Lango did not hold a position in any of the new securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post With 5G Already Priced in, You Can Do Better Than Qualcomm Stock appeared first on InvestorPlace.
- PR Newswire
Qualcomm Schedules First Quarter Fiscal 2020 Earnings Release and Conference Call
Qualcomm Incorporated (NASDAQ: QCOM) today announced that it will publish the Company's financial results for its first quarter fiscal 2020 on Wednesday, February 5, 2020, after the close of the market on the Company's Investor Relations website, at https://investor.qualcomm.com/financial-information. The earnings release will also be furnished to the Securities and Exchange Commission (SEC) on a Form 8-K, which will be available on the SEC website at http://www.sec.gov.
- Zacks
Qualcomm (QCOM) Stock Sinks As Market Gains: What You Should Know
Qualcomm (QCOM) closed the most recent trading day at $92.97, moving -1.66% from the previous trading session.
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3 High-Yield Tech Stocks for Dividend Investors to Buy Right Now
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- Yahoo Finance
5G will be in every metro area in the US by the end of 2020: Qualcomm president
Qualcomm President Cristiano Amon says every U.S. metro area will have 5G connectivity by the end of 2020.
- Bloomberg
Intel and Softbank Beware. Open Source Is Coming to the Chip Business
(Bloomberg) -- After revolutionizing software, the open-source movement is threatening to do same to the chip industry.Big technology companies have begun dabbling with RISC-V, which replaces proprietary know-how in a key part of the chip design process with a free standard that anyone can use. While it’s early days, this could create a new crop of processors that compete with Intel Corp. products and whittle away at the licensing business of Arm Holdings Plc.In December, about 2,000 people packed into a Silicon Valley conference to learn about RISC-V, a new set of instructions that control how software communicates with semiconductors. In just a few years, RISC-V has grown from a college teaching tool into an open-source standard being explored by industry giants including Google, Samsung Electronics Co., Alibaba Group Holding Ltd., Qualcomm Inc. and Nvidia Corp.“Most of the major companies are putting substantial efforts into RISC-V,” said Krste Asanovic, a computer scientist at the University of California, Berkeley, who was part of the team that developed the standard. He’s co-founder of SiFive Inc., a startup that sells chip designs based on RISC-V (pronounced “risk five”).Open source harnesses the contributions of multitudes, not just the proprietary ideas of a few companies. New code is shared, so anyone can see it, improve it and build their own contributions on top of it. After being dismissed by giants like Microsoft Corp. in the 1990s, this expanding body of work has become the foundation of the internet, smartphones and many software applications. Last year, IBM bought open-source pioneer Red Hat in the biggest software deal in history. Even Microsoft got on board, acquiring GitHub, the largest repository of open-source code.Opening up even small parts of the chipmaking process is anathema to many in the $400 billion industry. But if enough companies commit to an open-source approach, that could create a shared pool of knowledge that may be hard for Intel and Arm to keep up with.Early developments focus on instruction sets, which govern the basic functions of processors. Only two have mattered for years. One is Intel‘s X86, which dominates computer processors. Buying a chip from Intel or licensee Advanced Micro Devices Inc. is the only real way to use this instruction set. And Intel is the only company that can change it.The other instruction set is the basis of all major smartphone components. It is owned by Arm, a unit of Softbank Group Corp. This can be licensed for a fee, so other companies use it to design their own chips. But again, only Arm can alter the fundamentals.This has left the rest of the industry relying on the innovation of just two companies. That was not a problem for decades because most processors were general-purpose components that got faster and more efficient each year through production advances. Those industry axioms are unraveling, though. The steady march of chip miniaturization has bumped up against the laws of physics, while artificial intelligence and a flood of data from the internet and smartphones require new ways of processing information. A fresh set of instructions will help create better chips to power driverless cars, speech recognition and other AI tasks, RISC-V’s backers say.Google is using RISC-V in its OpenTitan project, which is developing security chips for data center servers and storage devices. “There are a range of other computational tasks, such as machine learning, that could benefit from an open computing architecture,” said Urs Holzle, who has overseen the technical infrastructure of Google’s massive data centers for years.Samsung said it will use SiFive designs in chips it’s making for mobile phone components. RISC-V has appeared in microcontrollers – a basic form of a processor – that are part of more complex chips sold by Qualcomm and Nvidia. Western Digital Corp., one of the largest makers of data-storage devices, plans to use the technology in some products and has open-sourced its designs. Alibaba has announced a chip based on RISC-V and several universities have published open-source designs.There are 200 Chinese members of the RISC-V Foundation, a non-profit group created in 2015 to promote the use of the instruction set. An Indian project developed six processors using the technology.RISC-V specifications are developed, ratified and maintained by the foundation’s technical committee, made up of engineers and other contributors from several member companies. Proposed revisions are posted on GitHub. RISC-V designs can either be free or licensed. While there’s no strict requirement to stick to the official specifications, members have an incentive to make their designs compatible. This gives chip customers multiple options for the blueprints they need to design components that communicate properly with the software, according to backers of the project.It’s still very early days, though. In terms of actual chips created, sold and used, RISC-V is nowhere. Arm’s technology is in almost all the 1.4 billion smartphones made each year. More than 200 million PCs sold annually are based on Intel’s X86 instruction set.One criticism of RISC-V is that it won’t end up saving money because there’s more work involved in using open standards. This echoes complaints raised about Linux and other open-source software when they were gaining ground decades ago.Arm said the idea that RISC-V reduces costs doesn’t make sense. “Innovation goes far beyond an instruction set,” said Tim Whitfield, a vice president of strategy at the company. “Arm’s IP is highly configurable and provides our partners with the flexibility to innovate and differentiate where they can add real value while minimizing risk and cost.”Martin Fink, Western Digital’s former chief technology officer who still advises the CEO, said it’s about spurring innovation in a crucial field that’s still locked down, rather than saving money. “It’s free as in freedom not as in free beer,” he added. “It’s about community and collaboration.”Other RISC-V backers argue that the more-collaborative process will eventually reduce the cost of creating chips, especially for data center operators and other companies that are increasingly designing their own processors, according to David Patterson, a former Berkeley professor and a distinguished engineer at Google. “Companies all over the world are collaborating to develop because it saves them money,” he said.Pressure on the incumbents to step up their game might be the biggest immediate impact of RISC-V. Last year, Arm announced a try-before-you-buy plan with a much lower fee so smaller companies and academic institutions could do exploratory work using its instruction set.Intel said it is adding new instructions that will help with AI processing and other new areas. “Intel engineers have continually advanced the X86 architecture standard, providing best-in-class performance,” the company added in a statement. Qualcomm, one of Arm’s biggest customers, sees room for multiple approaches, including RISC-V, according to Keith Kressin, a senior vice president of product management at Qualcomm.To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Alistair Barr, Vlad SavovFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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The Zacks Analyst Blog Highlights: Qualcomm, Broadcom, Micron and Nvidia
The Zacks Analyst Blog Highlights: Qualcomm, Broadcom, Micron and Nvidia
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US-China Tech Race: US Chipmakers May Be At Risk
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What's in Store for Semiconductor ETFs in Q4 Earnings?
As most companies in this space have seen no negative earnings estimate revisions and have a favorable Zacks Rank, semiconductor ETFs might continue to see smooth trading in the weeks ahead.
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Apple Partner Pegatron Plans New Facilities in Vietnam
Apple (AAPL) expected to benefit from assembly partner Pegatron's new production facility in Vietnam.
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The Zacks Analyst Blog Highlights: Alphabet, JPMorgan Chase, Comcast, IBM and QUALCOMM
The Zacks Analyst Blog Highlights: Alphabet, JPMorgan Chase, Comcast, IBM and QUALCOMM
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Top Stock Reports for Alphabet, JPMorgan & Comcast
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- Reuters
US STOCKS-Wall Street hits new highs in strongest week since August
Analysts expect earnings at S&P 500 companies to drop 0.8% in the fourth quarter, but forecast a 5.8% rise in the first quarter of 2020, according to Refinitiv IBES data. Billionaire David Tepper, who founded hedge fund Appaloosa Management, told CNBC that he remains bullish on U.S. equities. The Dow Jones Industrial Average rose 0.17% to end at 29,348.1 points, while the S&P 500 gained 0.39% to 3,329.62.
- TipRanks
These 3 Market Giants Get a Thumbs-Up Ahead of Earnings
Once again, we’re heading into earnings season. All publicly traded companies are required by law to disclose their revenues, earnings, and other financial data quarterly, and the reports generally start coming in a few weeks after each calendar quarter ends. And now it’s time for the Q4 2019 reports to start coming in.Earnings season always generates a spate of analyst predictions, and this time is no different. Looking back, market watchers note that 2019 saw a series of lackluster quarters – that nevertheless did not impede stock performance. Companies compensated by reducing their forward guidance and then clearing that lower bar.So far, it seems that this is likely to happen once again. Bank of America’s securities strategists wrote, “We expect to see a 2% beat in 4Q earnings. Estimates have reset sufficiently, in our view.” At the same time, analysts are expecting stock prices to continue rising, with any pullback likely to be both shallow and short-lived.Ahead of the earnings releases, three market giants have received recent upgrades or price-target hikes from top analysts. Rating upgrades are important, as they indicate a positive change in the likely direction a stock will take – and their timing is important, too, as an upgrade shortly before an earnings release will push investor expectations. Using TipRanks' Stock Comparison tool, we lined up the three alongside each other to give us an idea of what the Street thinks is in store for the trio in the year ahead. American Electric Power (AEP)American Electric Power is one of the largest electricity providers in the country, with over 5 million customers in 11 states, some 26,000 megawatts of generating capacity, and a market cap of $47 billion. AEP is scheduled to release fourth-quarter earnings on February 20.Ahead of the print, the company is expected to show EPS of 62 cents, down 10 cents from Q4 2018. In the last three quarters, AEP has beaten the forecasts by an average of 6.7%. For the full year 2019, EPS is estimated at $4.18. In Q3 2019, the last reported, AEP showed strong results. The Q3 EPS, $1.46, was far ahead of the $1.33 predicted.Like many utilities, AEP pays out a dividend to shareholders. The 70-cent quarterly payment annualizes to $2.80, with a yield of 2.9%. This beats the average S&P yield by a wide margin, and makes the stock more attractive despite a relatively low upside potential (more below). Better for investors, the company has a history of steadily increasing the dividend, and at 48%, the payout ratio indicates both sustainability and room for further dividend growth.A reliable business base and solid earnings gave Shelby Tucker, 4-star analyst with RBC Capital, reason to upgrade his rating and price target on AEP. In his comments on the stock, Tucker pointed out the “robust rate base and earnings growth,” and noted, “We view AEP as having best value in the same peer group of quality utilities and see it trading at an improved multiple.”Tucker moved his rating up to Buy, and increased his price to $103 (from $96). His new target suggests a modest, but likely reliable, upside of 5% for the stock. (To watch Tucker’s track record, click here)All in all, American Electric has a Moderate Buy rating from the analyst consensus. This is based on 9 recent stock reviews, including 5 Buys, 3 Holds, and 1 Sell. Tucker’s upgraded Buy is the most recent of those ratings. Shares have an average price target of $97.25; this implies a minimal downside from the $98.55 trading price. (See American Electric stock analysis at TipRanks)Apple, Inc. (AAPL)Apple needs no introduction. Tim Cook's baby is a giant in every sense of the word. It is the world’s largest publicly traded company, and in summer of 2018 was the first company to every exceed a $1 trillion market cap. Apple is currently valued at $1.37 trillion. The company has a reliable – and loyal – customer base over 900 million strong, and saw over $265 billion in revenue in 2018.2019 was challenging for Apple. A series of headwinds – the US-China trade tensions, maturation of the smartphone replacement cycle, slowing iPhone sales – combined to push earnings down and forced management to seek alternate strategies to maintain revenue growth. During the year, Apple shifted toward an emphasis on its Services and Wearables segments, along with revamping the Mac and iPad lines, to compensate for the decline in iPhone sales, and that strategy is bearing fruit. Outside factors – the switch to 5G, with its concomitant necessity for customers to upgrade devices, and the apparent success of President Trump’s tariff strategy in forcing China into trade negotiations – are also looking better for Apple as 2020 opens.Q3 2019 showed that Apple’s new strategy is working. While iPhone sales were lower than expected, 18% growth in Services and 54% growth in Wearables powered an overall gain in total revenue, to $64 billion. The $3.03 EPS was 6.7% above the forecast.Looking ahead to Q4, analysts are sanguine. The final quarter is normally Apple’s strongest, and EPS is expected at $4.53. Since the December 2018 quarter, Apple has beaten earnings forecasts by increasing margins in each report.Canaccord analyst Michael Walkley sees plenty of reason for optimism as Apple gears up for its January 28 earnings release. He points out Apple’s market leading Wearables position, with strong growth in the Air Pods and Watch, and says as well, “We believe Apple’s ecosystem approach, including an installed base that exceeds 1.4B devices globally, is leading to record services revenue, and we expect the higher margin services revenue growth to continue outpacing total company growth. We are also encouraged by the strong demand for the iPhone 11 lineup and believe Apple will maintain its market share leadership of premium-tier smartphones that could be bolstered by a 5G upgrade cycle.”Walkley upgraded Apple to a Buy, and set his price target at $355, implying an upside of 11%. (To watch Walkley’s track record, click here)Overall, Apple’s 34 analyst ratings add up to a consensus view of Moderate Buy. The breakdown is 20 Buys, 11 holds, and 3 Sells. Apple’s rapid share appreciation in the past month has pushed the stock price above the average target, and the analysts have yet to adjust. Shares are selling for $318.73, while the average target is still at $296. (See Apple’s stock analysis at TipRanks)Qualcomm, Inc. (QCOM)It makes sense to talk about Qualcomm along with Apple. The chipmaker is Apple’s main supplier of smartphone modem chips, a factor that will be integral to both companies’ positioning in the global switch to 5G networks. In addition, Qualcomm and Apple ended a long-running legal battle last year with an agreed settlement that saw Qualcomm on the receiving end of a large – and undisclosed – lump sum.2019 was volatile for Qualcomm, as it was for much of the chip industry, but the company’s settlement with Apple and subsequent agreement to once again displace Intel as Apple’s prime modem chip supplier, gave the company a boost. QCOM shares ended the year with an impressive annual gain of 59%.In 2H19, QCOM saw gains when it beat earnings estimates in calendar Q3. Despite year-over-year drops, both the top and bottom lines exceeded forecasts. At the bottom line, the 78-cent EPS was well ahead of the Street’s 71-cent forecast, while the top-line $4.81 billion in revenues beat expectations by 2.3%. For calendar Q4 2019, QCOM is again expected to show a 71-cent EPS when the company reports on February 5.Canaccord’s Walkley, quoted above, looked at QCOM shares, too, and had this to say: “Given … 75 plus 5G licenses, we believe Qualcomm has a strong chance to maintain its current licensing business and is well positioned to benefit with 5G network builds ramping around the world. Further, we believe the recent Apple settlement and Samsung and LGE renegotiations protect a strong portion of Qualcomm’s long-term licensing business model.”In line with his optimism, Walkley reiterated his Buy rating on the stock and increased his price target to $115. His new price target suggests an upside potential of 20%. (To watch Walkley’s track record, click here)Qualcomm’s Moderate Buy consensus rating is based on 18 analyst reviews, including 12 Buys and 6 Holds. With shares trading for $95.91, the $99.41 average price target implies a modest upside of 4%. (See Qualcomm stock analysis at TipRanks)
- Investor's Business Daily
Dow Jones Stays In Rally Mode, Led By Visa, Home Depot; Qualcomm Surges, Leads Nasdaq 100
The Dow Jones, up more than 500 points this week, hit another new high Friday along with the S&P; 500 and Nasdaq. Qualcomm surged in the Nasdaq 100.
- Reuters
US STOCKS-Wall Street hits new high as data boosts growth outlook
The S&P 500 gained 0.21% to 3,323.61 and the Nasdaq Composite was up 0.05% at 9,362.01. Declining issues outnumbered advancers for a 1.06-to-1 ratio on the Nasdaq. The S&P index recorded 122 new 52-week highs and no new lows, while the Nasdaq recorded 186 new highs and nine new lows.
- Barrons.com
Stocks Keep Rising Because China’s Economic Numbers Look Good
The Dow Jones Industrial Average rose 32 points, or 0.1%. The S&P 500 was up 0.2%, and the Nasdaq Composite rose less than 0.1%.
- MarketWatch
Qualcomm stock gains after Citi upgrade
Shares of Qualcomm Inc. are up nearly 4% in Friday morning trading after Citi Research analyst Christopher Danely upgraded the stock to buy from neutral and upped his price target to $108 from $89. "We expect upside to both revenue and margins for Qualcomm going forward given share gains in 5G, higher [average selling prices], and increased royalty revenue," Danely wrote. While he's worried over the long run about declining royalty rates and Apple becoming more involved in its own chip process, he expects the 5G rush "will put these trends on hold for at least the next 12 months like in previous upgrade cycles." Shares have added 21% over the past three months, as the S&P 500 has risen 11%.
- InvestorPlace
3 Reasons Nvidia Stock Could Be Set for a Monster 2020
Back from the dead? That's what it feels like with Nvidia (NASDAQ:NVDA), as shares have erupted over the past few months and quarters. It's no secret that chip and semiconductor stocks are back in favor, but the resurgence in Nvidia stock is even more impressive given how hard it was hit.Source: Hairem / Shutterstock.com Coming into the fourth quarter of 2018, Nvidia stock was riding high. Investors had enjoyed a multi-year run in the stock that had returned roughly ten-fold on their early investment. The stock peaked at just over $290 per share, but then began to slip.The top came on Oct. 2. Because crypto-mining had inflated the company's top- and bottom-lines and those buyers suddenly vanished, it sent Nvidia into a tumultuous fall.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The Top 5 Dow Jones Stocks to Buy for 2020 Nvidia stock was going to get hit hard regardless during this time, as the S&P 500 and Nasdaq endured peak-to-trough declines of ~20% in less than three months. But Nvidia management had perhaps the worst timing possible to announce this negative crypto-related news. Shares ultimately fell more than 50% in just a few months.Is that all over now? Let's look at three reasons Nvidia may be back. GrowthPerhaps Nvidia's largest catalyst for a robust 2020 is a return to growth. The company has reported the first three quarters of fiscal 2020 already, with the last report likely due up in about a month.If the results are in-line, the company will report a ~8% decline in full-year sales and a ~16% decline in annual earnings. These figures are bad -- especially for a stock that's rallied 48% over the past six months -- and cap off a very disappointing 2019. But investors are unlikely to focus on the Q4 results, and instead focus on what's ahead.That's as consensus expectations call for a 19.1% rebound in growth and for earnings to grow 30.2% in fiscal 2021. It's obviously impossible to say whether Nvidia will beat or fall short of these estimates, but if management can deliver, it will represent record figures for both metics. Nvidia will officially be "back" if that's the case.As for looking beyond calendar 2020, there's no telling what roadblocks may lie in the way. All I can say is that, Nvidia is positioned in various secular growth trends and its products are literally the backbone to many of the services, automations and technologies that companies are and will continue to rely on in the future. Mellanox DealIn March, Nvidia announced it will acquire Mellanox for $125 per share in a $6.9 billion deal. In December, Nvidia received approval from the EU. China was the obvious worry when it came to approval, given that its silent treatment on Qualcomm (NASDAQ:QCOM) and NXP Semi (NASDAQ:NXPI) caused that deal to fall through.With the phase one trade deal now signed though, the hope by many is that Chinese regulators will be willing to play ball and sign off on the deal. Nvidia has recently said it expects the deal to close in early 2020.Why does this deal matter? Nvidia has said it expects the deal to be accretive to gross margins, earnings and free cash flow immediately after closing. That would help give a nice boost to an already improving situation. It will also be one more catalyst to take Nvidia stock higher. Nvidia Stock Chart Click to Enlarge Source: Chart courtesy of StockCharts.comIs Nvidia stock stretched? Well, let's just say that it's not exactly flying under the radar. The stock is up about $100 per share, or almost 70% from the August lows. Given that run, I wouldn't be surprised to see the stock hit "pause" at some point this year.That said, it's hard to bet against such a strong trend. After plunging below $190 in 2018, the stock tried several times to breakout over this level in 2019. It finally did so in October, while also reclaiming the 100-week moving average. The latter became support as Nvidia stock continued to grind higher.For now, the 10-week moving average continues to act as support, while the stock flirts with a breakout over $250. Ideally, we would get a pullback to uptrend support (blue line) and the 10-week moving average first. That way the stock can unwind some of its overbought condition and investors will get a chance to buy the dip.There are plenty of analysts getting bullish on the stock as well, with the latest calls ranging between $275 and $300 (shown via a blue box on the chart). In the past week, Nvidia stock has received a $300 target from four different analysts. So it's not as if just one or two bullish calls are being taken into consideration here.That doesn't mean Nvidia stock will get to $300 or that it will do so in the next month or two, but it's something to consider. As it stands right now, the technicals are another catalyst to the stock.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post 3 Reasons Nvidia Stock Could Be Set for a Monster 2020 appeared first on InvestorPlace.
