Many “out-of-home” stocks surged on Monday, Nov. 16, as leading vaccine company Moderna (OTC: MRNA) disclosed its coronavirus vaccine proved 94.5% effective in clinical trials, and that it lasts longer than expected in a refrigerated environment.
This is fantastic news, and it reignited the continued rotation from “stay-at-home” stocks to “reopening stocks” that began earlier this month following the release of positive data from Pfizer (NYSE:PFE).
One sector that combines both the long-term growth prospects of stay-at-home tech stocks with the cyclical qualities of many “out-of-home” stocks are semiconductors, which also got a boost Monday. But it wasn’t only the vaccine data that moved semis, but also another hugely important tidbit of news that was buried underneath all the vaccine hype. And it’s one that semiconductor companies of various stripes have been waiting for for a while.
Qualcomm gets a license to supply Huawei
On Monday, mobile chip giant Qualcomm (NASDAQ:QCOM) received a license to sell some of its 4G chips to Chinese phone giant Huawei. Qualcomm surged about 3.3% on the news, but other big semiconductor stocks such as Micron Technology (NASDAQ:MU) and Taiwan Semiconductor Manufacturing (NYSE:TSM) surged even more, up about 6.8% and 6.5%, respectively. Other semi-related stocks were broadly up as well.
So why was this announcement, which named Qualcomm specifically, so important for others