One of the hottest stories of 2021 will likely be 5G.
After all, it’s expected to disrupt just about everything around us. It’s expected to usher in the Internet of Things (IoT), social gaming, virtual reality (VR), augmented reality (AR), robotics, automated vehicles, healthcare imaging, diagnostics, and more. There’s even been talk about 6G, with China launching a satellite to test airwaves for the potential technology.
In short, there could be big potential ahead for 5G, and 5G related stocks, like oversold shares of Qualcomm (QCOM). After falling from a high of around $165, the stock appears to have caught support around $135. From here, we’d like to see a potential gap refill around $165.
It’s also ridiculously oversold on RSI, MACD, and on Williams’ %R.
Helping, Piper Sandler analyst Harsh Kumar just upgraded the stock and raised his price target to $160 from $150.
According to Barron’s, he argues, “Qualcomm is trading at a 5-year low relative to the SOX on a P/E basis, and the company is one of the cheapest in large/mega cap semiconductors.” In addition, the analyst says, “the company’s business remains primed to take advantage of consumers upgrading or buying 5G smartphones. Kumar said he expects 5G handset sales to double in 2021, and grow nearly 50% in 2022.”