Qualcomm: Struggling To Turn The Corner
Update - May 11, 2023
Qualcomm is testing a double bottom at $104. The wireless stock is far too cheap here so the guess is that this level holds, but investors do maintain irrational fears regarding losing the Apple (AAPL) modem business.
Original article posted on May 4
- Qualcomm reported mixed FQ2'23 results.
- The wireless chip leader guided to weak FQ3 numbers with revenues falling sequentially due to a lack of a recovery in China and weakness probably at Apple.
- Despite the current headwinds, QCOM stock is cheap trading at ~8x normalized earnings once the current handset correction ends.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
While Qualcomm (NASDAQ:QCOM) has a promising business set up with a future beyond handsets, the company is still dependent on the mobile phone market. The wireless giant faces a difficult quarter ahead as handset revenue appears headed for another leg down. My investment thesis remains ultra bullish on the stock due to the Automotive and IoT growth potential, especially with the stock now trending down toward $105 in after-hours trading.
Read the full article at Seeking Alpha.
Disclosure: Long Qualcomm. Please review the disclaimer page for more details.