QCOM Stock Update - Strong Short Term Trade

TL;DR

Qualcomm's stock price has experienced significant growth since settling with Apple, but is it still a risky investment or now more certain? This analysis explores Qualcomm's chip business, competition from Apple, and the impact of 5G technology.

Transcript

good day fellow investors today we will discuss Qualcomm it's a very three interesting stock it's intriguing because the stock price really exploded since they settled with Apple and I'm here with the Alki who is in China working on his startup but still he has the time to share his thoughts on the company and on what's going on I made an analysis ... Read More

Key Insights

• 💪 Qualcomm's chip business has shown strong performance, offering better battery life and performance compared to competitors.
• 🍏 Apple settling with Qualcomm was anticipated, given the limited options available to Apple for a 5G chip supplier.
• 🌐 The surge in global smartphone shipments due to the 5G upgrade cycle could positively impact Qualcomm's earnings in the short term.
• 🐿️ Apple's potential competition in chip manufacturing poses a risk to Qualcomm's market share in the future.
• 😀 Qualcomm's success depends on maintaining its dominance in patents, especially with 5G technology.
• ❓ The stock remains volatile and unpredictable due to ongoing investigations and potential lawsuits.
• 💪 While Qualcomm's chip business is strong, other aspects of a phone also contribute to a user's experience.

Questions & Answers

Q: Why was Qualcomm considered a risky investment in the past?

Qualcomm's stock was seen as risky because it was difficult to predict the outcomes of settlements, licensing agreements, and trade commission investigations. This uncertainty made it challenging to assess its value as an investment.

Q: Did the settlement with Apple come as a surprise?

No, it was not surprising as Apple had limited alternatives to Qualcomm. Not releasing a 5G phone or purchasing from a lesser chip maker would have put Apple at a disadvantage. Qualcomm's superior chips made settling the best option for Apple.

Q: What sets Qualcomm chips apart from their competitors?

Qualcomm chips offer significantly better battery life and raw performance compared to competitors like Samsung. The Snapdragon chip used in high-end phones improves battery life by around two hours and increases performance by approximately 20%.

Q: Is Qualcomm at risk of competition from Apple?

Apple has the potential to create its own chips with Intel's modem division acquisition. While this could pose a threat to Qualcomm's market share, Apple typically uses in-house chips only for iPhones, limiting the impact.

Summary & Key Takeaways

• Qualcomm is a company with two main businesses: patenting and chip manufacturing.

• The chip business has shown promising performance, with Qualcomm chips outperforming competitors in terms of battery life and raw performance.

• Apple's potential competition in chip manufacturing poses a risk to Qualcomm, but a surge in global smartphone shipments due to the 5G upgrade cycle could positively impact Qualcomm's earnings.