China and South Korea are currently leading the world in the launch of 5G networks, while the US is expanding its new system, while Europe is lagging behind, Zhitong Financial APP has learned. In the United States, most urban areas have at least some 5G network connections, and major service providers are working to achieve 5G base station coverage.
JPMorgan Chase & Co therefore said that he should pay attention to the two listed technology companies, which have become increasingly powerful with the expansion of 5G.
Qualcomm Inc (QCOM.US)
Qualcomm Inc has been one of the largest chipmakers by total revenue and maintained that momentum during health incidents. Qualcomm Inc's total sales exceeded $24 billion in 2019, with a net profit of $4.4 billion.
Qualcomm Inc is actively moving towards 5G, developing and selling various chipsets for new technologies. The company has a range of chips that can be used in mobile platform processors and personal computers, as well as chips specifically for the automotive market. Strong sales of 5G chips have boosted the company's profits. Qualcomm Inc's profit exceeded expectations by 16% in the second quarter and is expected to grow sharply in the third quarter.
Samik Chatterjee, an analyst at JPMorgan Chase & Co, said he believes Qualcomm Inc will be a leader in 5G technology and the upcoming 5G smartphone track, as well as its 5G shipments will support Huawei's smartphones in the future, and the stock is expected to usher in a bull market.
The analyst has a target price of $120 for Qualcomm Inc's shares, with a rating of "buy". Currently, the share price is $115.79, with 3.6 per cent room for growth.
Overall, 13 analysts gave the stock a "buy" rating, seven a "hold" rating and one a "sell" rating, with a consensus "moderate buy" rating with an average target price of $117.
Qorvo (QRVO.US)
Qorvo is a leading supplier of high-quality network chipsets with a market capitalization of US $14.5 billion. The company's chips are suitable for most mobile wireless devices, including laptops, smartphones and tablets. The company has introduced chips for older but still useful technologies, such as cordless phones and industrial radios, to enrich its product line.
All of these devices are connected to the 5G network, and Qorvo positions itself as providing chips for the base station market. The company is already a leader in 2G, 3G and 4G RF chips, so the move to 5G is a reasonable step it is already taking. The company has solutions for the lower 5G band (up to 39GHz) and is working on higher-band applications.
Bill Peterson, an analyst at JPMorgan Chase & Co, said that thanks to the increase in 5G smartphone content, Qorvo once again maintained higher-than-expected 5G shipments. While shipments of traditional 4G remain weak, smartphones continue to tilt towards 5G, a trend that is emerging. Apart from mobile devices, demand for 5G infrastructure is improving, which is the main reason for the growth in the June quarter.
The analyst has a target price of $140 for Qorvo, with a "buy" rating. So far, the share price is $131.43, with 6.5 per cent room to rise.
Overall, 13 analysts gave the stock a "buy" rating, 3 analysts a "hold" rating and a consensus rating of "strong buy", with an average target price of $135.8.
In addition, Harlan Sur, an analyst at JPMorgan Chase & Co, warned investors to be wary of MACOM Technology Solutions (MTSI.US), a supplier of semiconductor equipment and components. Despite the company's strong performance, strong execution and enhanced profitability, the company's share price looks expensive compared with its peers, he said. The analyst has a target price of $35 and a "sell" rating.