QUALCOMM, Inc. (QCOM) Benefits in the Mobile Wars

QualcommWireless communication company QUALCOMM, Inc. (NASDAQ:QCOM) , a twenty-five year old manufacturer, developer, and marketer of telecom products and services, is but one of the many companies taking advantage of the fairly recent mobile revolution. Although it might not be as well-known as Google Inc (NASDAQ:GOOG), which stands to earn enormous gains throughout the next few years through advertising, or Apple Inc. (NASDAQ:AAPL) and Samsung, which have sold millions of smartphones, mobile devices, and apps, Qualcomm and its stock have been one of the most popular topics of discussion in its industry today. This is mainly due to its longevity in the market compared to these aforementioned companies and other tech giants, in addition to other factors. The big question is: will you make a decent profit from investing in Qualcomm?

How is Qualcomm Performing?

With a market cap of $109.29 billion, Qualcomm still expects to report a first-quarter profit of $1.12 per share with almost $6 billion in revenue, in comparison to its $0.97 on almost $4.7 billion in revenue for the last year. Shares of Qualcomm have gained more than 10% for the past year, and looks like they will continue to push forward in the near future.

Let the Chipsets Fall Where They May

Fellow chip maker Intel Corporation (NASDAQ:INTC) has been steadily lagging Qualcomm. Due to the decreasing sales of personal computers, Intel’s profits and its stock are no longer what they used to be. The company’s fourth quarter earnings for 2012 were only $2.5 billion, around 27% down from the same quarter only a year prior. Revenue also declined from $13.9 billion to $13.5, a three-percent reduction in the same time frame.

ARM Holdings plc (ADR) (NASDAQ:ARMH) , a relative newcomer to the sector, is dead set on using the decline of PC sales and the tablet/smartphone boom to its advantage. The company has done so by designing chipsets and providing licenses to manufacturers and buyers such as Apple. ARM Holdings has been raking in record amounts of revenue, in no small thanks to the popularity of iPads, iPhones, and other iGadgets. For Apple, though, the share price could use a boost; shares have tumbled from a high of $705 by twenty-nine percent. Despite it being debt-free, the high valuation of its stock means that not all traders can afford to buy in.

Is Qualcomm Worth Trading?

The brand may not be as visible or as easy to recall as its rivals in the telecom industry, but Qualcomm is definitely one to watch out for in the stock market. In addition to their proprietary and ubiquitous Code Division Multiple Access technology, or CDMA, there are numerous aspects that put it in the showing as very desirable stock and a company that is, appearances aside, highly dominant in the mobile chipset market. Its performance, although marred at times by slight dips, is supported and furthered by its solid position and competitive nature.

Qualcomm has very little debt (if any) and offers attractive valuation, as shown by its history and drive.  Despite being somewhat behind the scenes compared to its more prominent contemporaries in the telecom race, this mobile chip company is no small fry in the industry.

The article Qualcomm Benefits in the Mobile Wars originally appeared on Fool.com and is written by Rhodora Dagatan.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!