War for Semiconductor Supremacy Rages On: Which Company Will Come Out on Top?
Investing.com | Jun 01, 2023 10:13
- Escalating U.S.-China trade war is focused on the semiconductor industry
- Both countries are looking to ramp up investments in mass production of semiconductors
- Amid the geopolitical standoff, one of these three companies could come out on top
Last year was defined by a growing trade war between the United States and China centered around semiconductors. These tiny but crucial components, often referred to as the "oil of the 21st century," play a vital role in producing electronic devices that have become an integral part of our daily lives, ranging from simple calculators to powerful computers.
With the rise of artificial intelligence, the demand for integrated circuits, chips, and advanced electronics is expected to skyrocket. This trend has caught the attention of governments worldwide, as they recognize the strategic importance of these technologies.
So, how will companies leading the global semiconductor production fare in the race to mass-produce semiconductors?
Using InvestingPro . Its fair value is estimated at around $1660-1670 per share.
Source: InvestingPro
The persistence of growth despite weak quarterly results highlights investors' high hopes for this sector. It is widely regarded as one of the most promising industries in the years to come.
Qualcomm/h2
Qualcomm (NASDAQ:QCOM), a global semiconductor manufacturer, supplies chips to a wide range of customers spanning from watches to powerful PC servers. A highly anticipated event this year is the launch of the new Snapdragon 8+ Gen 3 processor, following the release of Generation 2.
Prominent phone manufacturers Xiaomi and Oppo eagerly await this launch. However, there could be potential geopolitical risks associated with partnering with these leading manufacturers from China.
From a technical perspective, the company's stock price has shown a strong recovery near the recent lows of around $102, indicating a double-bottom formation.
Buyers may face a supply zone near $125, but a rally toward this year's peak price of $140 per share is always possible.
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