QUALCOMM, Inc. (QCOM): Cashing in on The Chips

Let’s Pick

Qualcomm is a leader in the mobile chip industry, and will definitely benefit from the dominant position it holds until there is some fierce competition from other companies. This is seldom likely to happen in the near term. The company expects strong sales growth and has raised its fiscal 2013 revenue and earnings guidance. Whether it is Apple or Samsung, Qualcomm will be the winner.

Broadcom has a very low debt-equity ratio and a forward P/E of 11 times. Macroeconomic factors and seasonal variations may have led Broadcom to think conservatively about its guidance, but the company has strong fundamentals and the capacity to maintain its foothold in the industry.

As far as NVIDIA is concerned, there are a number of rumors doing the rounds, and going by the history of it the stock price reacts to news. At these levels the stock looks cheap, but I’ll be cautious to create any position now.

The article Cashing in on The Chips originally appeared on Fool.com and is written by Shaleen Lohia.

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