Is This Tech Stock Too Hot to Touch After Earnings?

Qualcomm (NASDAQ:QCOM) is a San Diego-based semiconductor and telecommunications equipment company. Shares have shot up 29% over the past month. The stock has gained 68% in 2019 so far.

Concerns over the 5G rollout were quelled somewhat with the release of Qualcomm’s fourth quarter and full-year results for 2019. It posted earnings of $506 million or $0.42 per share and sales of $4.81 billion. This was down from sales of $5.83 billion in the prior year. Adjusted earnings per share fell to $0.78 compared to $0.90 in Q4 2018.

The stock took a hit earlier in the year due to the heightening trade war between the United States and China. The White House banned tech companies from selling gear to Huawei, the Chinese telecom behemoth. This pushed down forecasts going forward. There are signs that the US and China are close to a limited trade deal, but these issues have remained sticking points that may even prevent a smaller deal from being hashed out.

Still, Qualcomm is projecting big things for 2020. It forecasts that it will sell between 175 million to 225 million 5G handsets globally in the 2020 calendar year. However, analysts still expect a slow start to the 2020 fiscal year. That may leave some room for investors to wait for a more favourable entry point. Shares of Qualcomm had an RSI of 77 as of close on November 8, putting the stock in technically overbought territory.