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Stock Qualcomm Inc. NASDAQ: Qcom They stuck in a disappointing trading range for several months, despite the fact that the chip manufacturer constantly achieves strong financial results. The shares decreased by 10 percent from the last week of February and check the lower end of their range from December. While part of this decrease is due to wider sales on the market and the mood of the cooling investors around technological actions, the insufficient efficiency of Qualcomm is more and more disconnected from their foundations compared to peers.

The status of 158 US dollars is currently trading at 2021 levels, despite the fact that they publish record incomes and one of the most profitable EPS prints in recent years. This combination of strong financial indicators and the broken price of shares means that Qualcomm is currently sitting in a ratio of profit (PE) only 17.

This number is distinguished in a semiconductor space, where peers trades in a significantly higher quantity. For example, Micron Technology Inc Nasdak: Mu PE is sitting at 30, Nvidia Corp NASDAQ: NVDA 40, while Advanced Micro Devices Inc NASDAQ: AMD It is a high 105. The gap suggests that Qualcomm is very underestimated, and the market cannot recognize its position in solving the chips controlled by artificial intelligence, automobile growth and stabilizing the smartphone.

Income shows force, but investors remain indecisive

The last report on Qualcomm’s income in early February was another obvious blow to the expectations of analysts both income and EPS, but the shares reaction were muffled. Despite the fact that the company also reported strong directions in advance, it seems that fears associated with the softness of demand for smartphones controlled enthusiasm.

Despite these problems, the wider Qualcomm growth potential continues to be bright. The company takes serious steps in processors that contribute to AI, which become more and more important for effective efficiency in each industry and vertical.

Wall -Steztin sees the main side from here

Although the market remains skeptical, the analysts were more optimistic. After the February report on income, several companies confirmed bull positions. For example, Piper Sandler retained his rating of overweight with a target price of $ 190, while Benchmark issued a purchase rating for $ 240.

At the current price of Qualcomm at $ 158, the target price of Benchmark is a potential of more than 50 percent. Even analysts with neutral ratings, such as Cantor Fitzgerald and Evercore ISI, have price purposes above current levels, which further enhances the argument that Qualcomm can be traded with an unjustified discount.

Qualcomm is to continue to expand beyond smartphones is one of the reasons for this confidence. While mobile chips remain the main income driver, the company aggressively advancing in computer computers, automobile processing and industrial IOT applications, all areas expected in the coming years.

Technical setting suggests that the change can be

From a technical point of view, Qualcomm can be on a turning point. The relative strength of the action (RSI) is at the level of 46, signaling slightly resold conditions, while the MACD is on the verge of a bull crossover, which often precedes a change in bull pulse.

In addition, the shares have recently been bounced from the December minimum, which indicates that the level of support can be formed. The inability of the bears to push the reserves here, despite the weak market moods, suggests that the nearest bottom can be in place.

If the impulse shifts, and the market will begin to return to high -quality technological names, Qualcomm may be one of the first to extract, taking into account its strong case of evaluation and recent support of analysts.

Qualcomm Going Foward

Record income of Qualcomm, low rating and strong target prices of analysts all indicate significant growth potential. Currently, the company is trading at a discount on evaluation compared to its peers, and even analysts with more careful prospects have price purposes, which suggest that the action is too cheap at current levels.

For long -term investors, this may be one of the best points of entering the months. If a wider market stabilizes, and Qualcomm continues its expansion into computer calculations controlled by artificial intelligence, a return to 190 dollars or higher can occur earlier than expected.

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