Stock price when the opinion was issued
He sold some when it got above $200, then bought back below $150. It's 2% of his portfolio; when it gets to 2.5%, he brings it back to 2%. If it goes below 2%, he brings it back up. Likes it long term.
The negative is repeated fights with AAPL; if the relationship ends, looking at $20 downside. Sexy side is AI on a chip; if that comes through, probably $70-80 upside.
He likes them without them buying Intel. It is one of the cheapest players in the chip space from a multiples perspective. For example Apple's P/E is near 40 but Qualcomm's is 25. They are working on new semi-conductor technology. He thinks it will re-visit its highs relatively soon, and considers it more of a trade than an investment. Buy 29 Hold 14 Sell 1
(Analysts’ price target is $215.96)He bought more. 14x forward PE and pays a 2.3% dividend yield. Good value. The ARM lawsuit was an overhang, but now resolved in QCOM's favour. This and the semis saw momentum in the first half of 2024. Business fundamentals remain intact; only QCOM can serve certain AI applications. Likes it for the long run.
Trades at 12.5x PE, trades at a 41% discount to semi sector, and they've done a good job moving into EVs.