Wells Fargo downgrades Qualcomm, says exposure to smartphone industry will hurt chip stock

Qualcomm will be among the chip stocks struggling in the new year due to its exposure to smartphone sales, Wells Fargo warned Monday. Analyst Gary Mobley downgraded the stock to underweight from equal weight. Mobley also maintained his price target to $105, which implies a downside of 11.8% over Friday's close.

Mobley said Qualcomm and other companies that have performance tied to smartphone demand will struggle, as the number of smartphones is likely to decline in 2023 and then grow modestly after. A flattening of 5G penetration will also hamper these chip names. Smartphones are considered a big-ticket purchase that consumers may be more likely to skip or think more thoughtfully about as inflation pinches pocketbooks.

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Why stock-market investors shouldn't count on a 'Santa Claus' rally this yearThis Christmas, investors might want to bet on a lump of coal instead of Santa Claus delivering tangible stock-market gains to Wall Street. Your rally was canceled because last year at Christmas, YOUR lobbyists canceled the CTC and threw 4 million kids back into poverty! Any rallies beyond the brief blip will not be happening because the same lobbyists continue to oppose the CTC and its 19.3 billion each month.
Source: MarketWatch - 🏆 3. / 97 Read more »