Amid the late-Feb. to March selloff, Qualcomm’s (NASDAQ:QCOM) downtrend is unusual. The smartphone chip giant has multiple upsides ahead while its stock languishes. What happened?
Qualcomm pays a modest dividend as it invests smartly in its research and development. Last month, it unveiled an augmented reality smart viewer design. This is a reference design for an AR smart viewer that can tether to a processing puck, Windows PC, or smartphone.
On Feb. 9, Qualcomm unveiled a Snapdragon X65 5G Modem-RF System. This will keep the company ahead of the competition. It supports the 3GPP standard. It is also the first 10 Gigabit 5G system.
A shortage in NAND and DRAM will lift chip pricing. This is a tailwind for Micron. The stock is up from last year but still has more upside ahead. Though the vaccine will lessen the need for remote working, the trend will not go away. PC orders will continue, boosting prices and hurting DRAM supply.
In the storage space, Seagate (NASDAQ:STX) is attractive. In the last quarter, it posted a slight drop in gross margins. Revenue fell by 3% to $2.62 billion. Seagate is an inexpensive stock that investors should hold indefinitely. It is also less volatile than QCOM or MU stock, which is sensitive to the semiconductor cycle.
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