3 chip stocks upgraded at Susquehanna today

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Susquehanna analysts upgraded three chip stocks as they believe the vast majority of the semiconductor downcycle is behind us.

“We believe the acute portion of the semiconductor downcycle for the handset, PC and Consumer end markets has past. Industrial and Auto semis yet to correct,” the analysts wrote in an upgrade note.

They raised Intel (NASDAQ:INTC) to Neutral, as well as Qualcomm (NASDAQ:QCOM) and Skyworks Solutions (NASDAQ:SWKS) to Positive. New price targets for these three stocks are $26, $140, and $135 per share.

“We upgrade the shares to Neutral (from Negative) as three of these concerns have lessened or abated. Namely: 1) AMD is no longer gaining PC share; 2) better roadmap execution; and 3) WFH PC hangover and inventory correction has run its course. DC remains the near-term risk as Asian checks suggest PC inventory has normalized, with restocking opportunities starting in 3Q,” the analysts added on Intel.