5 Best 5G Stocks to Buy Now

4. QUALCOMM Incorporated (NASDAQ:QCOM)

Market Cap as of August 8: $165.99 billion

QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based semiconductor and telecom services company. It has more than 100 5G license agreements worldwide and its Qualcomm Snapdragon 5G Modem-RF systems are the world’s first commercial modem-to-antenna 5G solution. QUALCOMM Incorporated (NASDAQ:QCOM) has spent 20.3% of its total sales on R&D expenses which is why it is one of the companies that will be positively impacted by the CHIPS and Sciences Act.

For Q2 2022, QUALCOMM Incorporated (NASDAQ:QCOM) reported a non-GAAP income of $3.356 billion or $2.96 per share, compared to $2.87 estimates. The company beat its revenue consensus by $50 million after generating $10.9 billion, approximately $4 billion over the previous quarter. QUALCOMM Incorporated (NASDAQ:QCOM) generated $2.895 billion of net cash from operating activities and had cash and cash equivalents of $2.676 billion at the end of the quarter.

On July 28, Canaccord analyst T. Michael Walkley maintained a Buy rating on QUALCOMM Incorporated (NASDAQ:QCOM) shares and lowered the price target to $225 from $250. The analyst noted that the company’s leadership position in 5G growth should result in strong share gains with leading smartphone OEMs. The analyst reduced his price target due to multiple compression.

Here is what ClearBridge Investments had to say about QUALCOMM Incorporated (NASDAQ:QCOM) in its Q4 2021 investor letter:

“Market strength continued in the fourth quarter, with only the communication services sector down in the Russell 1000 Value Index. Portfolio returns benefited from the strong performance of semiconductor maker Qualcomm, which has executed exceptionally well in pursuing the transition to 5G, growing both content and share due to its leadership position in cellular technology. The chipmaker recently outlined a number of peripheral growth opportunities outside of mobile markets, including automotive (where it hopes to leverage its strong presence in the automotive infotainment space into advanced driver assistance systems), Internet of Things (including opportunities in the PC market, VR/AR market, and factory automation) and radio frequency (where mmWave adoption globally, including China, would drive substantial upside).”