Why AMZN, GOOG, MSFT might destroy NVDA (From InvestorPlace)
If Qualcomm Holds $145, Its Next Move Could Be Massive 
Key Points - Qualcomm’s recent sell-off has created a short-term setup that’s almost too good to ignore.
- Analyst support remains strong, with targets pointing to 50% upside.
- A modest valuation makes this a rare discount in the semiconductor sector.
Tech giant Qualcomm Inc. (NASDAQ: QCOM) has once again been testing the patience of even its most loyal investors. Despite consistently beating earnings expectations, operating in one of the market's hottest sectors, and trading against the backdrop of record-high equity indices, the stock still can’t break free. It’s now down 3% for the year, while the S&P 500 has gained more than 8% and market-leader NVIDIA Corp. (NASDAQ: NVDA) is up a blistering 35%. The latest 10% drop to close out July broke the steady uptrend in place since spring, raising questions for long-term holders about the stock’s next move. Yet for those on the sidelines, the recent weakness could be setting up an attractive entry point. It does not necessarily demand a multi-year holding period but is undoubtedly a short-to-medium term trade worth considering. Reasons to Remain Optimistic on QCOM The first thing worth noting is that Qualcomm’s underlying performance remains solid beneath the frustrating price action. Management has moved past concerns about losing business from Apple Inc. (NASDAQ: AAPL), which is shifting more production in-house. The company continues to demonstrate resilience in core markets like mobile and automotive. The semiconductor sector itself is still firing on all cylinders. Consider the iShares Semiconductor ETF (NASDAQ: SOXX), in which Qualcomm is the fifth-largest holding. It’s up more than 50% since April, underscoring Wall Street’s belief in the growth potential of semiconductors. Against that backdrop, Qualcomm’s underperformance looks more and more like an anomaly than a warning sign. Appealing Valuation and Analyst Support Then there’s the valuation. With a price-to-earnings (P/E) ratio of just 14, Qualcomm trades at a steep discount to both the broader market and sector peers, many of whom have P/E ratios in the triple digits. In an increasingly frothy market, this offers a rare opportunity to buy a proven business at a bargain multiple. A wall of recent analyst support strengthens the bullish case. Piper Sandler, Mizuho, Rosenblatt, and JPMorgan have all reiterated Buy or equivalent ratings within the past two weeks, with price targets running as high as $225. Qualcomm closed out Monday’s session below $150, which implies some very tempting upside potential in the region of 50%. The End of Elon Musk? Don't make him laugh.
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