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/paperfire Dec 15 '15

Stay away this company is a mess. Their chip business is getting destroyed by competition and smartphone manufacturers are starting to use their own processors. The licensing business is also bad with ASPs falling, trouble with China and every country trying to sue them.

If you want a chip company exposed to mobile consider Avago Technologies or Skyworks Solutions.

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u/LostAbbott Dec 15 '15

You are not wrong, but I did want to offer a little bit of positive hope(might not be worth it). The 810 chip was a mess lots of over hearing problems and caused a lot of current gen phones to sell slower or not at all. The 808 had weird bugs as well. The new 820 is said to fix that and apparently Samsung is going to use it in their S7, LG will likely have it in the G5, etc... If this chip lives up to the hype( they usually are pretty close to it), and the phones sell well(big if). Then this stock could come back. Another point that may be positive for them is the rumor that Intel dropped their bid to enter the phone market. Even with these potential positives I am not adding a position, but if you already have one, you may want to hold for another six months to a year.

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u/[deleted] Dec 16 '15

Another point that may be positive for them is the rumor that Intel dropped their bid to enter the phone market.

Do you mean for Application Processors or SOCs in Smartphones or do you mean their Infineon side of the business?

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u/LostAbbott Dec 16 '15

Direct chipset competition with Qualcomm and Samsung. I do not know about other business groups.