Qualcomm has received a license from the U.S. government to sell 4G mobile phone chips to China-based Huawei Technologies Co. Ltd., Reuters reported, citing the chipmaker’s spokeswoman.
The Reuters report said that the license given to Qualcomm (QCOM) is an exception to the ban imposed on all U.S. semiconductor companies, preventing them from selling products to Chinese firms amid trade restrictions.
Though the 4G products were not specified, it was reported that they are related to mobile devices. Qualcomm’s spokeswoman also said that the company has other license applications pending with the U.S. government.
Earlier on Nov. 4, Qualcomm posted stronger-than-expected 4Q results. Its earnings of $1.45 per share came in ahead of the analysts’ estimates of $1.17 per share, while its revenues of $6.5 billion exceeded the Street estimates of $5.93 billion.
Following the 4Q beat, Qualcomm now expects its top-line to be in the range of $7.8 billion to $8.6 billion in the first quarter of fiscal 2021. Meanwhile, it projects earnings in the range of $1.95 to $2.15 per share. (See QCOM stock analysis on TipRanks).
On Nov. 13, Citigroup analyst Christopher Danely reiterated his Buy rating on the stock and said that Qualcomm’s “upside is just starting,” thanks to the adjacencies and 5G upgrade cycle. The analyst expects Qualcomm stock to continue to outperform.
Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 16 Buys and 7 Holds. The average price target stands at $155.45, implying upside potential of about 7.8% to current levels. Shares gained by about 63.5% year-to-date.
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