Like most stocks, Qualcomm (QCOM) was beaten up in 2022.

But don’t count it out just yet.  After falling from about $190 to less than $105, the stock has started to pivot higher.  In fact, if QCOM can break above triple top resistance, it could run back to $140 a share, near-term.  Helping, JP Morgan says the stock could be primed for a big comeback in 2023, reaffirming an overweight rating on the stock, with a $185 target.

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As noted by Barron’s JP Morgan believes three strong catalysts could send it higher, including:

  • “Stabilization of the smartphone market”—The analyst expects a recovery in China demand as the Asian country starts to loosen restrictions and reopen the economy.
  • “Cycling past the peak inventory digestion”— Analysts don’t expect the chip-inventory glut problems at smartphone makers to get worse than the current December quarter.
  • “Potential restocking”—Analysts expect to see more orders for the company’s chips.

QCOM last traded at $124.65 a share, and carries a dividend yield of 2.43%.

Sincerely,

Ian Cooper