QUALCOMM is set to break a six-day losing streak as AI stocks stabilize on the NASDAQ. The company’s stock rose approximately 2.30% on Monday afternoon, reaching $161.25. Despite this increase, QUALCOMM has experienced a 10.42% loss over the past six trading sessions. The $176.05B company closed at $164.32 on April 17, down 2.53%.
It’s worth noting that QUALCOMM’s stock is currently trading 20% above its 200-day simple moving average but 5% below its 20-day SMA. Short interest on the stock as of March 31 stood at 1.75% of the total float.
Technology stocks faced challenges recently due to disappointing earnings reports from companies like ASML and Taiwan Semiconductor Manufacturing. Super Micro Computer, a maker of artificial intelligence servers, also saw a significant decline as it did not provide preliminary figures with its earnings announcement. As a result, the S&P 500 technology sector was dragged down by the slump in chip stocks.
Despite these challenges, QUALCOMM is still expected to report its Q2 earnings on May 1. Analysts estimate an EPS of $2.31 (up 7.64% Y/Y) and revenue of $9.33B (up 0.71% Y/Y). The stock has a Buy rating from sell-side analysts, with an average price target of $173.31. Within the last 90 days, 36 analysts rated QCOM as a Strong Buy.
Additionally, Seeking Alpha analysts also rate the stock as Buy, while the Quant Rating system gives it a Hold rating. The stock scores 3.47 on a scale of 5 in the Quant Rating system, with grades like D+ for Valuation, A+ for Profitability, and A- for Momentum.
As the Technology Select Sector SPDR Fund ETF rose 1.39% on Monday afternoon, investors are eagerly awaiting an onslaught of earnings reports. It will be interesting to see how QUALCOMM performs in the upcoming weeks amidst the ongoing market fluctuations.
