Best Stock Picks In Semiconductor Space - Broadcom (NASDAQ:AVGO), Qualcomm (NASDAQ:QCOM), Skyworks Solutions (NASDAQ:SWKS)

Mizuho hosted its quarterly handset industry call for checks on the state of the global handset supply chain amidst escalating geopolitical risks and deteriorating macro conditions.
Analyst Vijay Rakesh listed his key takeaways.
Handset component inventory was more than two times standard as distribution channels remain stressed.
China's demand was softer ahead of October 16 Party Congress.
The weaker-than-expected base Apple Inc AAPL iPhone 14 demand could extend industry time to recovery into 2H23E.
Qualcomm Inc QCOM could see pricing pressure (though offset by gains at Samsung).
They cut the C22E 5G units forecast to ~595 million, up ~8% y/y (prior: 600 million, up ~9% y/y), with demand weakness.
As he looks to a potential 2023E recovery in handsets, he saw Broadcom Inc AVGO, QCOM, and Skyworks Solutions, Inc SWKS as best positioned with a better long-term roadmap and wider competitive moats.
He saw AVGO (Buy; Price Target $725) well positioned with 2022E opportunities with 5G and ASIC ramps and a strong position in Wired Infrastructure and Enterprise Storage.
He believes its software segment could provide further operating leverage and drive even stronger FCF.
He believed QCOM (Buy; Price Target $175) is well positioned in the smartphone market as a technology leader with a long-term focus on 5G and expanding into new markets in RF and Auto.
He saw SWKS (Buy; Price Target $150) positioned well for the upcoming 5G ramps around the globe driven by strong iPhone, Korean OEM share gains, China OEM traction, and a significant 50-100% dollar RF content increase per handset vs. 4G.
SWKS also has opportunities in its broad markets business with growth in IoT, auto, and industrials, which he believes can improve SWKS's gross margins towards its 53% target.
Price Action: AVGO shares traded lower by 5.02% at $437.39 on the last check Monday.