This Company Wins the Battle Without Fighting: QUALCOMM, Inc. (QCOM)

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The rumors have definitely affected NVIDIA, but the recent quarterly results which were better than the analysts estimate, should relive the investors a little. Moreover, if the rumors are not true there can be further upside.  If the HPC market continues to grow and the “Tesla” HPC cards persist, it will boost the company’s profitability.

The company is in a good position to benefit from the growing PC gaming market. NVIDIA’s integrated Tegra 4, which is up to 6 times more powerful than Tegra 3 and LTE baseband compatible, should start delivering results in 2014. Currently a lot of uncertainty surrounds the company, but with the passage of time things should definitely move in its favor. I would just say, “Investors be patient NVIDIA should deliver in the long-run.”

The new entrant

Broadcom Corporation (NASDAQ:BRCM) is the latest company to enter the LTE network which is positioned to be available for use next year. Its LTE solution will be one-third the size of its rivals and will support all major technologies and standards. Further, the chip will offer a speed of up to 150 megabits per second. The company’s chip is planned for flagship smartphones and tablets, which means it is targeting Apple’s iPhone 5 and the 4G-enabled iPad, which currently operate on Qualcomm’s LTE chips.

Broadcom’s revenue has grown year-over-year and it has a very low debt-equity ratio of 0.23. Its net operating cash flow has increased to $621 million, and with a quick ratio of 2.09 it is fairly liquid. Broadcom currently trades a P/E of 27, with a forward P/E of 11 and PEG ratio of 0.81, signaling significant growth in the future. It is a good stock to diversify an investor’s portfolio.

The article This Company Wins the Battle Without Fighting originally appeared on Fool.com and is written by tarun bachhawat.

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