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Abhoy Sarkar's Avatar
published in Blogs
Jul 26, 2018

Qualcomm Loses NXP Deal

Qualcomm’s plans to acquire NXP goes for a toss, as China refuses to give the nod.

Qualcomm Inc., an American multinational semiconductor and telecommunications equipment maker, had been pursuing the deal for almost two years. While eight global jurisdictions had given the go-ahead, China’s refusal to the deal squashes Qualcomm’s dream to buy NXP - another global semiconductor manufacturer. Qualcomm's CEO Steve Mollenkopf had mentioned in Wednesday’s earnings call that if China did not approve, the company would walk away from the NXP deal.

Qualcomm’s last bid for NXP was $44 billion. With the deal falling through, Qualcomm is now left with paying a $2 billion breakup-fee to NXP. It also plans to buyback up to $30 billion worth of shares as promised to shareholders in the event of the deal’s demise.

NXP announced that it’ll repurchase $5 billion of shares.

While many people seem to be blaming the U.S.-China trade tensions as a major factor behind China’s rejection of the deal, the nation’s Commerce Ministry spokesman Gao Feng mentioned, "This case is about the enforcement of antitrust laws. It has nothing to do with China-US trade," according to Chinese state media.

 

 

Related Ticker: QCOM

QCOM's RSI Oscillator ascending out of oversold territory

The RSI Indicator for QCOM moved out of oversold territory on May 15, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 25 similar instances when the indicator left oversold territory. In of the 25 cases the stock moved higher. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on QCOM as a result. In of 74 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for QCOM just turned positive on May 19, 2023. Looking at past instances where QCOM's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .

QCOM moved above its 50-day moving average on June 01, 2023 date and that indicates a change from a downward trend to an upward trend.

Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where QCOM advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where QCOM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

QCOM broke above its upper Bollinger Band on May 26, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

The Aroon Indicator for QCOM entered a downward trend on June 01, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Fundamental Analysis (Ratings)

Fear & Greed

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.549) is normal, around the industry mean (7.010). P/E Ratio (12.346) is within average values for comparable stocks, (53.973). Projected Growth (PEG Ratio) (1.004) is also within normal values, averaging (2.567). Dividend Yield (0.026) settles around the average of (0.024) among similar stocks. P/S Ratio (3.187) is also within normal values, averaging (11.673).

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 63, placing this stock better than average.

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. QCOM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

Notable companies

The most notable companies in this group are NVIDIA Corp (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM), Broadcom (NASDAQ:AVGO), Advanced Micro Devices (NASDAQ:AMD), Texas Instruments (NASDAQ:TXN), Intel Corp (NASDAQ:INTC), QUALCOMM (NASDAQ:QCOM), Applied Materials (NASDAQ:AMAT), Analog Devices (NASDAQ:ADI), Lam Research Corp (NASDAQ:LRCX).

Industry description

The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.

Market Cap

The average market capitalization across the Semiconductors Industry is 27.63B. The market cap for tickers in the group ranges from 13.43K to 982.32B. NVDA holds the highest valuation in this group at 982.32B. The lowest valued company is CYBL at 13.43K.

High and low price notable news

The average weekly price growth across all stocks in the Semiconductors Industry was 0%. For the same Industry, the average monthly price growth was 16%, and the average quarterly price growth was 16%. ARRXF experienced the highest price growth at 56%, while WKEY experienced the biggest fall at -26%.

Volume

The average weekly volume growth across all stocks in the Semiconductors Industry was -45%. For the same stocks of the Industry, the average monthly volume growth was 35% and the average quarterly volume growth was 34%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 52
P/E Growth Rating: 55
Price Growth Rating: 47
SMR Rating: 62
Profit Risk Rating: 62
Seasonality Score: 1 (-100 ... +100)
View a ticker or compare two or three
Technical Analysis# Of IndicatorsAvg. Odds
   
   
Show details...
A.I.Advisor
published price charts
A.I. Advisor
published General Information

General Information

a provider of wireless communication systems

Industry Semiconductors

Profile
Fundamentals
Details
Industry
Telecommunications Equipment
Address
5775 Morehouse Drive
Phone
+1 858 587-1121
Employees
51000
Web
https://www.qualcomm.com
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QCOM and

Correlation & Price change

A.I.dvisor indicates that over the last year, QCOM has been closely correlated with SWKS. These tickers have moved in lockstep 82% of the time. This A.I.-generated data suggests there is a high statistical probability that if QCOM jumps, then SWKS could also see price increases.

1D
1W
1M
1Q
6M
1Y
5Y
Ticker /
NAME
Correlation
To QCOM
1D Price
Change %
QCOM100%
+2.13%
SWKS - QCOM
82%
Closely correlated
+2.30%
QRVO - QCOM
80%
Closely correlated
+1.20%
NXPI - QCOM
80%
Closely correlated
+1.06%
SYNA - QCOM
79%
Closely correlated
-2.55%
MCHP - QCOM
79%
Closely correlated
+1.86%
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