QCOM·QUALCOMM Incorporated

Qualcomm is withdrawing a UK lawsuit related to chip royalties, potentially reducing legal costs and risks. This could improve investor confidence in the company's operational focus. However, the stock faces pressure despite strong revenue, with weak guidance tied to supply chain constraints in the smartphone market. Multiple analysts have downgraded QCOM, yet oversold technicals and positive price movement suggest a potential contrarian opportunity. Institutional investors, including M&G PLC, State of New Jersey Common Pension Fund D, and LSV Asset Management, have increased their holdings in QCOM, signaling confidence in the company's future. Conversely, UBS and Mizuho have lowered their price targets, citing concerns about handset shipment declines and memory constraints. The interplay of negative ratings and encouraging market behavior creates a complex trading scenario. Investors should watch for further developments in the smartphone market and analyst revisions to gauge the stock's trajectory.