Qualcomm Stock |
Apple appeared to be moving forward with Intel to keep Qualcomm tech out of their mobile devices. Qualcomm and Apple had spent the better part of more than two years engaged in a legal skirmish over outsized royalty payments, patent infringements and IP theft.
In similar fashion, Cowen analyst Matthew Ramsay on Tuesday reaffirmed his Outperform rating for Qualcomm shares after the Apple settlement.
Cassidy sees Qualcomm as the “clear leader” in 5G modem technology, which he expects to ramp up during the second half of this year and into next year. He upped his target from $57 to $100, the highest listed on FactSet.
Qualcomm Stock |
Qualcomm retaliated by suing Apple (AAPL) for violating its patents. If it lost its court battles, Qualcomm would have given up a giant source of revenue, and it could have been on the hook for as much as $27 billion in damages for overpaid royalty fees.
Apple shares were up 0.4% on Wednesday morning.
Qualcomm Stock |
The two companies have just announced a settlement, with both agreeing to drop all litigation with the other worldwide.
He also has an underperform rating on Intel shares, which were up 3.6% in Wednesday trading and on track for their highest close since Sept. 21, 2000.
Qualcomm Stock |
Tic-tac-toe, three in a row
Speaking of 5G, JPMorgan focuses on it in the analyst's note on its upgrade today.
5G Connected Health Workshop: Meet Gene Dantsker PhD MBA from Health Innovation Media on Vimeo.
Shares of IBM fell more than 2% after hours Tuesday after posting mixed first-quarter earnings. The computer hardware company earned $2.25 per share, topping estimates of $2.22. Revenue came in at $18.18 billion, lower than the forecast $18.46 billion surveyed by Refinitiv.
In fact, I'd go JPMorgan one better, and say there's more than just a "potential" for chipset sales here. In its filing with the SEC, Qualcomm came right out and stated: Its settlement with Apple incorporates a "multi-year chipset supply agreement" with the smartphone maker.
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