Qualcomm, Inc. (QCOM) Is Just Where It Wants To Be

Page 1 of 2

Qualcomm, Inc. (NASDAQ:QCOM) came in tenth on our list of top ten tech stocks loved by hedge funds (see all 10 here). Despite having a market value in excess of $100 billion, Qualcomm still has solid growth prospects. The semiconductor company is being driven by a solid increase in demand for high-end smartphones and tablets. Qualcomm reported solid results last quarter and management provided a strong outlook for 2013 based on the rapid transition from 2G to 3G in China and India. The Wireless Intelligence Report expects over 1.5 billion subscribers to be added to 3G networks in the next two years.

FISHER ASSET MANAGEMENT

Another driving factor will be the adoption of LTE networks in developed nations, including the rapid adoption of LTE in the U.S. Qualcomm is also battling with Intel to become a key supplier for Apple’s future iPhone iterations. Intel has primarily been the driving force behind the tech that supports Apple’s smartphone, but Qualcomm’s new platform has been taking market share from one of its biggest rivals. Billionaire Ken Fisher of Fisher Asset Management is one of Qualcomm’s top fund owners (check out Ken Fisher’s new picks).

Qualcomm’s latest quarterly results showed the tech company shipped over 140 million MSM chipsets, which is up 11% year over year. Qualcomm’s newest platform, Snapdragon, is already seeing industry-leading growth. Qualcomm estimates some 420 different devices are using Snapdragon already, and another 400 models are in the pipeline. Our thesis on Qualcomm remains that it is one of the best ‘growth at a reasonable price’ opportunities in the industry (check out our analysis).

Texas Instruments Incorporated (NASDAQ:TXN) is nearly a third of the size of Qualcomm as measured by market-cap, but has the lowest growth rate among our semiconductor stocks listed, with a five-year expected earnings growth of only 2% annually. Where Texas Instruments falls short in growth it makes up in dividend. The tech company pays a 2.7% yield with only a 25% payout. We still remain cautious since Texas’ valuation is on the high end – forward P/E of 17x – and it has the highest debt-to-equity ratio by far at 50%. Many top-name billionaires fell out of love with Texas Instruments during the third quarter including Jim Simons, Ken Fisher and Ray Dalio (see Ray Dalio’s top bets here).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!