Micron, Qualcomm seen ‘in limbo’ going into earnings: Barclays
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Earnings season is about to kick into full swing and Barclays believes Micron (NASDAQ:MU) and Qualcomm (NASDAQ:QCOM) are “in limbo,” compared to several other large cap semiconductor stocks.
Micron and Qualcomm shares were each down roughly 0.6% in premarket trading.
Regarding Micron, the biggest debate is on NAND average selling prices, Barclays analyst Tom O’Malley said, where some believe there won’t be a huge drop due to an increase in server and PCs next year. “Investors either asked ‘isn’t [high bandwidth memory] over supplied’ or ‘is [high bandwidth memory] undersupplied’ meaning there isn’t a clear consensus view in the market,” O’Malley wrote. “Longer term investors seem more keen to take a shot at MU again, with faster money looking to be more negative.”
Micron is expected to report in late December. Analysts believe the company will earn $1.77 per share on $8.71B in sales.
Qualcomm has “lost a bit of luster” on the artificial intelligence trade, but investors are still asking about Arm’s (ARM) computing efforts into next year. “We think this is a name people want to come back to after the modem is taken out of models,” O’Malley wrote, referencing Qualcomm’s potential loss of its modem business with Apple (AAPL).
Qualcomm is slated to report fiscal fourth-quarter results on November 6. A consensus of analysts expect the company will earn $2.57 per share on $9.93B in revenue.