Shares of the San Diego-based chipmaker gained on Friday after the stock received an upgrade to buy from neutral and a one-year price-target boost by Mizuho analyst Vijay Rakesh on what he expects will be strong 5G-dominated growth.
"QCOM should start to see stable or increasing 5G royalties as the 5G handset cycle picks up in 2020-21," Rakesh said in a research note, adding that risk related to 4G handsets appears to be "in the rear view mirror."
He also said he is raising his one-year price target on the stock to $100 from $80.
Shares of Qualcomm have gained in recent weeks following stronger-than-expected fourth-quarter earnings and beefed-up revenue guidance amid an uptick in demand for its chips for a growing roster of 5G offerings.
One big fan of 5G's potential: TheStreet's Jim Cramer, who believes the technology's long-term potential is "badly misunderstood" by both investors and the public in terms of its future impact for mobile and wireless communications.
"Whether it be a cellphone upgrade cycle or a 200 million customer call for 2020 - the projections of Qualcomm - I think that 5G is badly misunderstood," Cramer said in a Real Money Pro column this week. "Five G is about massive digitization for pretty much everything and it's simply not believed."
Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM
Catch Up: Today's Top News Videos Below