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Home / Business / Qualcomm stock prices exceed $ 100 as Huawei settlement removes last 5G licensing hurdle

Qualcomm stock prices exceed $ 100 as Huawei settlement removes last 5G licensing hurdle



The share price of Qualcomm Inc. surpassed its previous high of $ 100 two decades ago on Thursday after the chip maker explained it had resolved a licensing dispute with the world’s largest smartphone maker and paved the way for the new 5G standard to emerge.

Qualcomm QCOM
+ 15.03 percent
On Wednesday, the shares set a daily record price of $ 107.40, exceeding its previous high of $ 100.00 set in 2000. on January 3, just before the dot-com disaster. The nearest $ 1

00 shares since then were on January 95th. – $ 95.91. Shares on Thursday last rose 15% to $ 106.84.

After not only raising Wall Street earnings for the quarter on Wednesday, Qualcomm announced a long-awaited patent licensing agreement with Huawei that it was annoyed a year ago when it recorded the results of the agreement with Apple Inc. at AAPL. ,
+ 1.12 percent

Of the 29 Qualcomm analysts, 18 have buy or overweight ratings, eight have ratings, and three have sales ratings. According to FactSet, 18 of them increased their targets, resulting in an average price of $ 113.24, up from $ 98.48.

It also emerged late Wednesday that China’s Huawei had surpassed South Korea’s Samsung Electronics Co. 005930 “,

as the largest supplier of smartphones in the world due to supply disruptions caused by the COVID-19 pandemic.

Susquehanna analyst Christopher Rolland, who praised Qualcomm and raised his target price from $ 125 to $ 110, called the village a “show star” in a note called “Huawei … Out.a.the.wei.” in the income statement for Wednesday.

In addition to the $ 1.8 billion in final royalty, Rolland estimates that Huawei will pay $ 200-250 million for Qualcomm technology licensing or QTL royalties per quarter.

“Outside the Huawei settlement, COVID continues to have a negative impact on global phone units, although the high-end and 5G segments continue to grow, helping to support Qualcomm’s profitability,” Rolland said.

Matthew Ramsay, a Cowen analyst with a better rating and raising his target price from $ 130 to $ 115, said the Huawei settlement earned about $ 1 or more in revenue for “refining.”

“Since all major global OEMs now have a 5G license, doubts about the QTL business model should be firmly ruled out,” Ramsay said.

JP Morgan analyst Samik Chatterjee, who is overweight and has raised his target price from $ 120 to $ 120, said Qualcomm’s leadership in 5G technology was “essential” to the peace deal before deployment.

“In addition, after reaching an agreement with Huawei on increased tensions between the US and China, as well as recent US restrictions on HiSilicon’s access to 5G chipsets, we believe this will lead to a bull case over potential Qualcomm 5G “Shipments. “Huawei will support the launch of its smartphones in the future,” said Chatterjee.

Oppenheimer analyst Rick Schafer, who has a Qualcomm rating, said all positive statements in the deal would be left out.

“We see an additional QTL risk due to the uncertainty surrounding the sale of 5G smartphones, given the challenge to the consumer in terms of discretionary spending and the potentially negative decision of the FTC,” Schafer said.

Qualcomm shares rose 21% year-on-year, compared to a 16% increase in PHLX Semiconductor Index SOX,
+ 1.84%,
18 percent increase in Nasdaq Composite Index COMP,
+ 0.50%,
and a 0.6% increase in the S&P 500 SPX,
-0.38 percent..


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