QUALCOMM, Inc. (NASDAQ:QCOM) has jumped ahead and integrated an LTE modem onto its processing chip. The benefits of the integration are faster speeds and a longer-lasting battery for Internet users. There might also be other advantages. Since all the players in the industry are moving in a similar direction, the disadvantages are minimal or nonexistent compared to the big advantages.
Intel Corporation (NASDAQ:INTC) and NVIDIA don’t have integrated processors yet, though NVIDIA is close with its Tegra 4i. That is the Tegra design with an integrated modem, but it won’t be ready to ship until later this year. Qualcomm’s product is ready now. It’s rumored that the Snapdragon S4 Pro from the previous line of Snapdragon chips, which also includes an integrated modem, will be in Google Inc. (NASDAQ:GOOG)’s Nexus 7 tablet. Galaxy S4 will be using Snapdragon 600, which isn’t an integrated modem but is from the most recent line of chips.
Qualcomm gets one year of being the only company out there with a processor integrated with an LTE modem. NVIDIA’s share price has not moved much in the last few years, and being behind Qualcomm will not help matters.
Consider QUALCOMM, Inc. (NASDAQ:QCOM) as an investment for its substantial potential due to excellent products and a strong market presence. With a PE of more than 17, Qualcomm trades at a higher valuation than its peers as shareholders have already rewarded the stock. It’s still a fantastic company, and the valuation is not so high that any mid-to-long term investor wouldn’t be comfortable taking a position.
You should probably avoid Intel until you see it making substantive progress. It might be doing everything right, but it’s tough to know that until the results can be seen. I like NVIDIA because of moves like Project Shield, but it has fallen behind in some areas putting a damper on the future. If NVIDIA can show potential for strong growth in the future, the share price should appreciate.
The article Qualcomm Leaping over Competitors originally appeared on Fool.com and is written by Nihar Patel.
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