'This too shall pass' --- Qualcomm stock avoids pain from forecast miss as it still looks better than other chip stocks

Qualcomm Inc. shares were relatively docile Friday as analysts accepted that inventory clearance is now a given in the semiconductor industry, and believe the company best known for its mobile chips will be able to pull out of it.

Qualcomm QCOM executives said Thursday that inventory issues would persist into June, and coupled with weaker-than-expected handset demand, its forecast would fall short of the Wall Street consensus. “But this too shall pass,” said Citi Research analyst Christopher Danley, who has a neutral rating and a $132 price target. In a note, Danley said that the recession is here, so “excess inventory will stick around for a couple quarters.”

“Longer-term, we believe CEO Cristiano [Amon] is proving Qualcomm can move beyond a modem and cellular IP company to become a true broad-based semiconductor player, diversifying into RF, Auto, IoT and beyond, Rolland said.

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