$Qualcomm (QCOM.US)$ remains cheap. The diversification str...
$Qualcomm(QCOM.US$ remains cheap.
The diversification strategy is working. QCOM is now growing on more than just handset modems and licensing fees and royalties. The next leg of growth will come from RFFE, internet of things and auto.
This investor’s meeting is a confirmation.
“The time for Qualcomm is now. Our technology roadmap extends to cover every growth opportunity”. Sounds like an exciting vision.
Next year EPS should exceed $10. Put a PE ratio at 20. And you get 200. With solid growth ahead.
A buy and hold stock and a great compounding machine.
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Austin ONeill : Exactly and just to expand on your point it looks like Apple will be a very small piece of QCOM revenue by the end of 2024. I think the fear of Apple making their own modems and not needing QCOM was holding the stock down, but todays presentation shows QCOM is moving on from Apple. Apple of course will continue to pay licensing royalties even if they succeed in making their own modems.
Wyatt lincoln Austin ONeill : Most likely Apple doesn't even want their own modem (I mean, all else being equal, but things never are). What they do want is a portfolio of 6G patents they can leverage against Qualcomm in price negotiations.
Sacai Luis Wyatt lincoln : I would agree, except there is modem and modem ... between the apple watch and the iPhone Pro Max 13/14/15, hte requirement are quite different. I would think Qualcomm will still serve the high end of apple handsets..
Rann New Sacai Luis : Yes, there is definitely a difference in requirements. Though, a watch modem would need to be even more power efficient than a phone modem, which would require an immaculate RFFE implementation as well as a superb integration between the modem and the RFFE. Since it doesn't look like they are working on their own RFFE, I don't really know what to make of it.
sPhCqxPcWZ Wyatt lincoln : Meaningful IP portfolio requires pioneering R/D. Trying to implement existing standards into products, while not easy, is fundamentally different from pioneering R/D.
I3kmETh4aA sPhCqxPcWZ : I generally agree, though there are degrees. Generating any kind of actionable IP requires at the minimum an active engineering work (so their work on the modem meets this minimum requirement). The engineering process may result in anything from defensive patents, to offensive, to pioneering IP.