Key Factors
Shares have lagged behind these of its friends, however that’s about to alter. 
Final yr’s headwinds have dissipated, and a number of other bullish tailwinds are rising. 
Search for shares to retake final month’s excessive of $146 after which transfer shortly in the direction of $160.
5 shares we like higher than QUALCOMM
In comparison with a number of the different chipmakers, Qualcomm Inc NASDAQ: QCOM has been buying and selling just a little slower in latest weeks. Whereas the likes of Superior Micro Dynamics, Inc NASDAQ: AMD are up 70% since November, and NVIDIA Corp NASDAQ: NVDA is up 40%, Qualcomm shares are barely up 30%. They’re even being outperformed by the black sheep of the chip shares, Intel Co. NASDAQ: INTC, whose shares have gained 40% since then, too. 
However this lagging behind its friends appears to be like set to finish, and Qualcomm’s comparatively lackluster efficiency is out of the blue turning into an appetizing shopping for alternative. Let’s soar in and see why. 
Contemporary improve
Simply final week, the workforce at Citi upgraded their score on Qualcomm shares, shifting the inventory to a Purchase score from Impartial. Having met goal prospects of chip corporations like Qualcomm, Citi feels there are particular purchaser traits rising that put Qualcomm and its product portfolio in a primary place to profit and seize market share. They’re on the lookout for the corporate’s steering to be boosted within the coming weeks, whereas analyst expectations for its earnings report later this month ought to be simply topped. Citi’s recent value goal of $160 factors to additional upside of at the very least 15% from the place Qualcomm shares closed on Wednesday, and this ought to be greater than doable within the coming weeks. Having spent a lot of 2023 consolidating from the 50% haircut shares taken the earlier yr, Qualcomm’s rally that kicked off final November could be very a lot intact and simply screams restoration. If the inventory can discover its option to $160 within the coming weeks, it’s going to have absolutely damaged out past final yr’s higher vary and will likely be at its highest degree in practically two years. 
Past the bullish outlook from Citi, Qualcomm bulls even have the elevated value targets from the groups at Barclays and KeyCorp earlier this week. This type of optimistic analyst consideration goes an extended option to fuelling demand and ought to be sufficient to tempt in even the extra cautious investor. Financial institution of America has additionally reiterated its Purchase score on the inventory this month and went as far as to name Qualcomm a prime decide for 2024. 
Getting concerned
Having weathered the worst of the storm led to by greater rates of interest and supply-chain points, these headwinds are actually dissipating, and Qualcomm is taking a look at maybe one of the best tailwinds it has had in a few years. The corporate has completed nicely to place itself on the forefront of the bogus intelligence (AI) revolution and spoke to this very level earlier this month. Qualcomm’s Snapdragon Digital Chassis is about to convey generative AI to autos, which will likely be a game-changer by way of digital cockpits and automatic driving programs. It’s already introduced a strategic partnership with Bosch to showcase a few of these capabilities. 
The corporate’s earnings are due out on the final day of January, and traders will likely be watching carefully to see if the rising optimism from Citi and its friends is justified. There’s a way of warning for the time being on the subject of Qualcomm inventory, however there’s an excessive amount of stepping into its favor to justify this proper now. Even the broader semiconductor trade is selecting up the correct of momentum, with a report final week displaying semiconductor gross sales rose in November for the primary time since August 2022. 
Even from an entry perspective, the dip seen in Qualcomm shares because the begin of the month solely improves the danger/reward profile. The inventory had gotten fairly frothy within the remaining weeks of final yr, and its relative power index (RSI) was screaming overbought. It’s now again at a pleasant impartial degree, which bodes nicely for a breakout rally within the coming weeks. Earlier than you think about QUALCOMM, you will wish to hear this.MarketBeat retains observe of Wall Avenue’s top-rated and greatest performing analysis analysts and the shares they advocate to their purchasers every day. MarketBeat has recognized the 5 shares that prime analysts are quietly whispering to their purchasers to purchase now earlier than the broader market catches on… and QUALCOMM wasn’t on the checklist.View The 5 Shares Right here Which shares are main institutional traders together with hedge funds and endowments shopping for in at the moment’s market? Click on the hyperlink beneath and we’ll ship you MarketBeat’s checklist of 13 shares that institutional traders are shopping for up as shortly as they’ll.Get This Free Report