#2 - Qualcomm (NASDAQ:QCOM)
A year ago, I wouldn’t have been quite as sold on Qualcomm (NASDAQ:QCOM). The company was mired in a legal dispute with Apple. At stake was Qualcomm’s role as chip provider for the iPhone. However, the two sides managed to reach a multi-year agreement that, for now, leaves Qualcomm as the sole provider of chips for the iPhone.
At some point, Qualcomm’s partnership with Apple may end. And there’s no question that smartphones are one of the key devices in a connected future. However, Qualcomm also does business across other areas of the IoT sphere. For example, late in 2020 the company announced a partnership with DISH Network (NASDAQ:DISH) to help them develop their O-RAN compliant 5G network. The build-out of a 5G infrastructure will remain a catalyst in this sector for years to come.
At the time of this writing, QCOM was trading at a significant discount to the 12-month price target laid out by analysts. The stock is also down about 12% for the year and pays a dividend with a yield of right around 2%.
About QUALCOMM
QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products.
Read More - Current Price
- $208.73
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $188.74 (9.6% Downside)
