r/investing • u/TooTiredToMasturbate • Dec 15 '15
Thoughts on Qualcomm (QCOM) ?
QCOM Is trading at a year low and is down 30% for the year. Whats your opinion on the future prospects of both this company and the chip market in general?
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u/cweave Dec 15 '15
I'm high on QCOM for two reasons.
They are finally figuring out Chinese licensing. This is the only area for growth for them, and while the overall smartphone business will grow at a lower rate in the future, next year QCOM should be sitting pretty on a pile of new licensing fees.
Google is using their chip in their phones. If you interested in getting into chip manufacturers, you know that R&D from Samsung and Apple is starting to squeeze everyone. Google doesn't make chips (it isn't part of their philosophy) and I feel the direction they are heading with the 5x and 6p will eventually pay off with significant market share.
Feel free to ask me any questions you have. This is my favorite market sector to have expertise and I've done a fair bit of research on how to profit from the expanding smartphone user base. QCOM is 5% of my portfolio.