For a while, it wasn’t looking good for the chip market. After witnessing a perfect supply/demand curve that put them firmly in charge, they’re now facing a market where supply is glutting and demand is dwindling. Despite this, there are new signs of life for AMD (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), and Seagate (NASDAQ:STX) as Barclays offered new support and improved ratings. All three, meanwhile, are up in Monday’s trading.
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Barclays—via analyst Blaine Curtis—hiked all three stocks up to Buy, noting a much more positive view of the semiconductor market going forward. Curtis also doesn’t look for stocks in this sector to go as low as they did back in October, although some parts of the market could still falter in the coming days. Any connection to industrial and automotive will likely flag, as these sectors are inherently weak.
A recent leak about Qualcomm’s upcoming Snapdragon 8cx Gen 4 system-on-a-chip (SoC) processor suggests that users will likely see a lot more power. Further, Susquehanna analyst Christopher Rolland put his “negative” rating back on Intel (NASDAQ:INTC) because it was likely to continue losing ground to AMD, which Blaine Curtis now calls a Buy. Oddly, though, Rolland also looks for corporate spending to continue to slow. That may drag down the entire market a bit, but with some more likely than others to profit in other sectors, the gains in one may help another.
Meanwhile, analyst consensus figures show off similar stances. AMD stock is the only Strong Buy in the bunch, while Qualcomm and Seagate are both Moderate Buys. Qualcomm’s average price target of $144.23 offers 10.46% upside potential. Meanwhile, Seagate represents a downside risk of 4.42% thanks to its average price target of $60.17.
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