Buying Qualcomm stock is an excellent way to get in on a company that creates software, semiconductors, and services related to wireless technology. It’s incorporated in Delaware and is headquartered in San Diego, California. The company has patents related to TD-SCDMA, 4G, and 5G standards.
NVDA
NVDA is a semiconductor stock that has a massive addressable market. For example, its data center business is expected to triple over the next five years. That’s a tremendous revenue for a company with just a 2.7% market share.
The recent Tech Crash has caused a lot of pain for chip stocks. Nvidia, in particular, has been hit hard. Its shares dropped 87% from a high of $163 to a low of $112 in a single month.
But NVDA’s long-term growth rate is much stronger than its short-term declines. Analysts expect NVDA to see 18% long-term earnings growth over the next few years. The company also has the opportunity to take advantage of the autonomous vehicle industry and the cloud gaming market.
In addition to being a leading player in the chip industry, NVDA is also a leader in the wireless technology industry. Its CDMA technologies are used for wireless voice and data applications. The company also has 110 5G agreements with mobile phone makers. As a result, watching the company’s upcoming fiscal Q4 report for guidance will be essential.
AND
Advanced Micro Devices (AMD) stock was under pressure recently despite a surge last year. Several factors are likely to weigh on the company’s shares shortly.
The first factor is the company’s recent purchase of programmable chip maker Xilinx. This acquisition was met with some skepticism by investors. It also represents a change in AMD’s product mix. The company is more focused on serving superior products rather than focusing on high margins. This could be an opportunity for investors.
The second factor is the company’s long-term earnings growth expectations. Qualcomm expects to grow its adjusted earnings per share by 43% to 54% in the fourth quarter of fiscal 2022. In addition, the chipmaker said its supply shortages are subsiding after years of decline.
Texas Instruments
Whether you’re looking to buy a stock for growth or income, you can’t go wrong with Texas Instruments. This semiconductor company has a long history of success and has built a business model that is both recession-resistant and high-margin. It sells a broad range of semiconductors, including analog and digital chips, and has a well-diversified business.
Texas Instruments also has an extensive catalog of products, 80,000 to be precise. These include communications equipment, personal electronics, enterprise systems, and wireless communication. They are used in various applications, including remote monitoring and autonomous driving. The company also has a strong portfolio of wireless patents that it owns.
This technology company is known for its embedded processors and design of analog semiconductors, which are used in computing and wireless communication. Among its many other products, it is a major supplier to Apple.
QCT business segment
Among the many business segments of Qualcomm Incorporated, the QCT segment is one of the largest suppliers of integrated circuits. It develops system software and provides other technologies for consumer electronics. It also designs wireless telecommunications products. The company competes with leading manufacturers such as Nvidia, Intel, and Samsung.
The company’s licensing technologies branch is essential for its continued profitability. The patents and licenses it generates are critical to the wireless products and services that it sells. This portion of the company derives most of its revenue from chipmaking and patent licensing. It also has a significant number of licenses to the intellectual property of other companies.
The company’s IoT business produces low-power chips for connected devices. It also invests in early-stage companies, such as FitBit and Matterport. In addition, it supports the emergence of new technologies, such as CPUs, through its Qualcomm Ventures arm.
The revenue stream may give investors pause.
Buying Qualcomm stock may be a bit of a risk, given the company’s recent struggles. The semiconductor powerhouse has suffered from several company-specific woes, including a slew of legal disputes, a patent fight with Apple, and even an antitrust suit filed by rival Arm.
While the company has improved over the past couple of years, the company’s revenue stream might give investors pause. However, it is worth looking into the company’s growth potential, as well as its dividend. It might be worth buying a share when the company regains its footing.
Although it has suffered from industry woes, Qualcomm still has a bright future. The company’s upcoming 5G chips are poised to power the next generation of Android devices and a host of connected factories. The company also holds a vast automotive design-win pipeline.