Qualcomm Will Benefit From Edge AI Strength In Smartphones And PCs, Analyst Says
Portfolio Pulse from Lekha Gupta
Qualcomm (QCOM) is expected to benefit from its edge AI positioning in smartphones and PCs, as well as its expanding presence in the auto sector. KeyBanc Capital Markets analyst John Vinh maintained an Overweight rating and a $225 price target for QCOM. Despite strong Q3 results, QCOM shares are trading lower due to potential headwinds, including the revoking of its license to sell to Huawei. Investors can gain exposure to QCOM through ETFs like Invesco Next Gen Media And Gaming ETF (GGME) and First Trust Nasdaq Semiconductor ETF (FTXL).
August 14, 2024 | 6:26 pm
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Taiwan Semiconductor Manufacturing Company (TSM) may impact Qualcomm's near-term gross margins due to price hikes. This could affect Qualcomm's profitability despite its strong growth prospects.
TSMC's price hikes could negatively impact Qualcomm's near-term gross margins, potentially affecting its profitability despite strong growth prospects in edge AI and the auto sector.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
First Trust Nasdaq Semiconductor ETF (FTXL) provides exposure to Qualcomm, which is expected to benefit from edge AI in smartphones and PCs. Despite strong Q3 results, Qualcomm shares are trading lower due to potential headwinds.
FTXL holds Qualcomm, which is expected to benefit from edge AI and expanding auto sector presence. The ETF may see positive impacts if Qualcomm's growth materializes.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Invesco Next Gen Media And Gaming ETF (GGME) provides exposure to Qualcomm, which is expected to benefit from edge AI in smartphones and PCs. Despite strong Q3 results, Qualcomm shares are trading lower due to potential headwinds.
GGME holds Qualcomm, which is expected to benefit from edge AI and expanding auto sector presence. The ETF may see positive impacts if Qualcomm's growth materializes.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Qualcomm is expected to benefit from its edge AI positioning in smartphones and PCs, and its expanding presence in the auto sector. Despite strong Q3 results, shares are trading lower due to potential headwinds, including the revoking of its license to sell to Huawei.
The analyst's positive outlook on Qualcomm's edge AI positioning and expanding auto sector presence suggests potential growth. However, the stock is currently trading lower due to concerns about the revoking of its license to sell to Huawei.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100