QUALCOMM, Inc. (QCOM) Will Keep Investors’ Smile Intact: NVIDIA Corporation (NVDA), Broadcom Corporation (BRCM)

The company will start commercial production by the end of this year or by the beginning of 2014. NVIDIA Corporation (NASDAQ:NVDA) recently showed a running version of “Grey,” a baseband and apps processor in a sole die, which should provide it a way into the growing smartphone market.

Broadcom Corporation (NASDAQ:BRCM), too, recently launched its LTE chip which will go for production in 2014. The chip’s prime differentiating factor is its size, which is almost 35% smaller than peers apart from being economical and efficient. The company leads Wi-Fi, Bluetooth, and GPS technologies, and the addition of the 4G LTE modem provides it with a broader product offering required to fabricate superior mobile devices.

According to Strategy Analytics, the company has improved its product mix and currently ranks fourth in the cellular baseband market. Its 3G baseband shipments have grown over 6 times in the first half of 2012. Thus, Broadcom Corporation (NASDAQ:BRCM) is showing continuous signs of improvement.

Final words

On one hand, where other companies have come up with a modest guidance for the future, QUALCOMM, Inc. (NASDAQ:QCOM) is positive about its prospects and has thus increased its earnings guidance to $4.25-$4.45 per share from the previous range of $4.12-$4.32. Though there is growing competition in the LTE baseband segment, Qualcomm should manage its lead and tap profits through the growth of this industry. At a P/E ratio of 18 times, which is well below the industry average, and the highest P/S ratio of 5.60, the company is a good fetch for long-term investors.

The article This Stock Will Keep Investors’ Smile Intact originally appeared on Fool.com.

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