Investing.com -- Barclays has reshuffled its semiconductor coverage ahead of first-quarter earnings, upgrading three names and downgrading one as the firm steers investors toward what it sees as pockets of value in an otherwise broadly understood fundamental backdrop.

Analyst Tom O'Malley argued in a note that in a market "where nearly every name in Semis is sold out through CY27, investors increasingly look to find value or discounts as the fundamental news is largely understood."

Against that backdrop, Barclays identified hard disk drives and radio frequency chipmakers as the most compelling opportunities.

Seagate Technology (NYSE: STX) was upgraded to Overweight, with Barclays raising its HDD market forecast and citing the company's transition to 40TB drives.

The firm sees Mass Capacity drive pricing rising as much as 15% year-over-year by 2027, arguing the re-rating is "more permanent" given industry dynamics and a commitment to lower capital spending. Western Digital's (NYSE: WDC) price target was also raised to $405.

Skyworks Solutions (NASDAQ: SWKS) and Qorvo (NASDAQ: QRVO) were also both lifted to Overweight. Barclays had flagged a shift in Apple's lower-end SKU launch timing as a near-term headwind, but now views the setup as a "buy the cut event," pointing to foldable iPhones and an iPhone 20 anniversary cycle as positive catalysts ahead.

Qualcomm (NASDAQ: QCOM) was reinstated at Underweight. Barclays cited a difficult handset environment and said AI at the edge "is still several years away," leaving the company without a clear near-term catalyst.

Penguin Solutions (NASDAQ: PENG) was downgraded to Equal Weight, with Barclays warning of significant margin compression likely continuing through 2027.