Qualcomm Inc QCOM shares are trading higher on Jan. 12 as the company’s stock was upgraded by Citigroup. While the stock traded in the green pre-market, its peers, NVIDIA Corp NVDA, Advanced Micro Devices Inc AMD and Intel Corp INTC traded in the red.
Citigroup analyst Christopher Danely upgraded Qualcomm shares from Neutral to Buy, accompanied by an increase in the target stock price to $160 from $110. This optimistic outlook is driven by expectations of a handset market recovery, bringing potential benefits for Qualcomm’s revenue and margins.
As a major supplier of mobile processors and 5G wireless chips to the smartphone market, Qualcomm faced challenges in 2023 due to a decline in smartphone demand. However, recent industry checks suggest early signs of stabilization in demand for global 3G/4G/5G handsets. A turnaround in smartphone demand is good news for Qualcomm investors.
At the business level, inventory replenishment and improving sales trends have been observed. Qualcomm, thus appears positioned for potential growth and increased market share, particularly in collaboration with smartphone giant Samsung.
In the past three months, Qualcomm stock rose 29.94%, which indicates that opinion improved on the business and how attractive it is to investors. The technical chart (above) shows a golden cross made at the beginning of December 2023, further bolstering bullish sentiments around the stock.
Investors are now eagerly looking forward to Qualcomm’s first-quarter earnings report on Jan. 31.
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