#4 - Qualcomm (NASDAQ:QCOM)
Qualcomm (QCOM) With friends like Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM) doesn’t need enemies. But it appears that the two companies have put aside their very public spat that had investors questioning if Qualcomm would be providing modems for Apple’s iconic iPhone. And let’s face it that is a major tailwind for QCOM stock in 2020.
Apple got unexpectedly strong sales for its iPhone 11 Series. But the real boom is going to come from 5G. Consumers will not be able to access the benefits of 5G on their mobile devices without a phone that is equipped to connect to 5G. And unlike the transition from 3G to 4G, this transition will require them to get a new device.
Qualcomm will be providing the modems for this new generation of iPhones. And in December 2019, Qualcomm’s president Cristiano Amon emphasized that launching Apple’s first 5G phone “as fast as we can” is the company’s top priority.
There is some concern that the stock, which jumped 90% in 2019, may already reflect the majority of the growth from 5G. And Apple may still develop an in-house solution that would be damaging to Qualcomm. However, a significant portion of the 5G growth is happening now and Qualcomm is in a position to see its stock price jump.
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
- $193.86
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 16 Buy Ratings, 6 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $180.48 (6.9% Downside)
