Out Fox The $treet

Qualcomm's stock got hit due to a license dispute with Arm Holdings. The dispute centers on Qualcomm's acquisition of Nuvia and differing royalty rates, with Qualcomm potentially facing higher fees under a new agreement. The financial impact is likely limited; Qualcomm can absorb higher royalty rates and pass costs to customers, maintaining strong earnings and margins. The stock trades at just 15x FY25 EPS estimates with AI PC and automotive opportunities outweighing the license dispute risks. QUALCOMM Incorporated  ( NASDAQ: QCOM ) slumped following news of an ongoing license dispute with  Arm Holdings plc  ( ARM ). Considering the impacts on both companies, the dispute is likely to be resolved making the biggest issue whether  Qualcomm will have to pay a higher royalty rate. My  investment thesis  remains Bullish on the stock with a huge AI opportunity ahead and a cheap valuation for a chip stock. Read the full article on Seeking Alpha.  Disclosure:...

  Qualcomm plans to expand into AI, AR/VR, and automotive chips to diversify from the mature handset market. The company sees a big opportunity in on-device generative AI chips, with potential partnerships with Meta Platforms and Microsoft. The stock is cheap at only 12x conservative EPS targets. Out Fox The Street members get exclusive access to our real-world portfolios. See all of our investments  here »   As with a lot of technology companies,  Qualcomm  ( NASDAQ: QCOM ) ran into a wall last year as elevated Covid spending on electronics led to a dip in demand for key markets. Ultimately, though, the wireless chip giant will step over the  wall with new ventures into AI, AR/VR and automotive chips to expand from the mature handset market. My  investment thesis  remains ultra Bullish on the stock trading at multi-year lows at $115. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more d...

Update - May 11, 2023 Qualcomm is testing a double bottom at $104. The wireless stock is far too cheap here so the guess is that this level holds, but investors do maintain irrational fears regarding losing the Apple (AAPL) modem business.    Original article posted on May 4 Qualcomm reported mixed FQ2'23 results. The wireless chip leader guided to weak FQ3 numbers with revenues falling sequentially due to a lack of a recovery in China and weakness probably at Apple. Despite the current headwinds, QCOM stock is cheap trading at ~8x normalized earnings once the current handset correction ends. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   While  Qualcomm  ( NASDAQ: QCOM ) has a promising business set up with a future beyond handsets, the company is still dependent on the mobile phone market. The wireless giant faces a difficult quarter ahead as handset revenue appears headed for anot...

  Qualcomm hosted an Auto Investor Day on September 22 to highlight the booming business in the auto sector. The wireless chip company enters a new era with business quickly shifting into the Autotech sector with a design-win pipeline surging to $30 billion. The stock shouldn't trade at only 9x EPS FY23 targets. This idea was discussed in more depth with members of my private investing community, Out Fox The Street.  Learn More »   Only a few years ago,  Qualcomm  ( NASDAQ: QCOM ) didn't have much of a business beyond smartphones. Now, the wireless chip giant hosted an  Auto Investor Day  due to surging demand and a growing order  book. My  investment thesis  is ultra-Bullish on the stock due to the cheap valuation on the dip to $120 and the growth opportunities outside of handsets. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details. 

Qualcomm beat FQ4 analyst estimates that included sharp declines from last year. The stock is jumping due to solid FQ1 guidance despite ongoing disputes with Huawei and missing Apple chip sales. The company forecasts 200 million 5G device shipments in 2020. At $90, the stock remains a bargain with a $6-7 EPS target before the benefit of the global 5G launch. The quarterly results of  Qualcomm  ( QCOM ) remain extremely complex to analyze. The shifting payments of key license customers makes most of the results not comparable from period to period, but the stock is seeing a rally in initial trading following FQ4 results as the modem company sees a rebound in device shipments due to the 5G worldwide launch gaining major steam in FY20. The  investment thesis  remains bullish as the shift to 5G has considerable upside as the wireless giant will capture more content per smartphone. Read the full article on Seeking Alpha.  More commentary - Out F...

Government departments are lining up against the FTC case on Qualcomm. The only benefit of an FTC win on appeal is foreign smartphone competitors. Qualcomm remains on target to generate $7 to $8 in annual earnings per share. The stock has a logical path to reach a $100 target with risks that the wireless giant doesn't eventually win on appeal. Qualcomm  (NASDAQ: QCOM ) finds itself in an odd position of having different parts of the government fighting over how to handle an antitrust ruling against the wireless chip giant. The key thrust of why the wireless giant is likely to win on appeals is the threat to national security and the global nature of the wireless handset business in 2019. The  bullish investment thesis  remains right on track despite analysts  heading to the sidelines  on risk concerns. Read the full article on Seeking Alpha.  More commentary - Out Fox The $treet - July 22, 2019 Disclosure: Long QCOM, AAPL. Please revi...

Qualcomm settles long lasting patent disputes with Apple. The new deal will immediately boost EPS estimates. The stock remains cheap with reasonable $7 EPS targets and a $70 stock price. In no big surprise to investors following our   investment research   on   Qualcomm   ( QCOM ), the company was able to obtain a   settlement   with   Apple ( AAPL ) over their wide disputes on patent royalties. The wireless technology giant had already garnered settlements in China and South Korea along with recent admission from Japan regulators that Qualcomm was not a monopoly. Along with constant signs that Apple was struggling to obtain a viable 5G modem by 2020, the expected outcome was a settlement that would send the stock soaring. Outside of unexpected financial terms, Qualcomm heads higher. Read the full article on Seeking Alpha.  More commentary on WhoTrades .  Disclosure: Long AAPL, QCOM. Please read the disclaimer page for m...

Qualcomm is well positioned for the global launch of 5G. The wireless giant already has 20-plus license deals and expects to generate more revenue from additional RF front-end content. The delayed launch of the Apple 5G iPhone plays to the advantage of Qualcomm. The company remains on track for $7-plus EPS prior to 5G related growth. The most important note from the Snapdragon Tech Summit last week is that 5G is a global rollout utilizing   Qualcomm   ( QCOM ) technology. A lot of the domestic wireless network providers are racing to become the first 5G providers, but anybody just focusing on the domestic market is missing the huge global market converging on 5G while other countries were far behind on 4G. Read the full article on Seeking Alpha.  Disclosure: Long QCOM, AAPL. Please review the disclaimer page for more details.   

Qualcomm is down over 8% on disappointing FQ1 guidance. Apple remains the main thorn in their financials impacting the comparisons until the license dispute is resolved. Business remains solid, with EPS targets rising even without ~$1.7 billion in high-margin license revenue. The net payout yield is set to reach 35% make a very bullish buy signal. The perplexing story of  Qualcomm  ( QCOM ) was further evident by the reaction to a  large FQ4 earnings beat . After massive stock buybacks and with 5G on the horizon, now isn't the time to abandon ship just because  Apple ( AAPL ) continues playing hardball. My  long-term investment thesis  remains solid. Read the full article on Seeking Alpha. 

Qualcomm has growth driver in the Internet-of-Things (IoT) market. The market will start looking beyond just mobile communications as FY19 starts. The $7 EPS target is a base case for FY19 with growth areas providing upside potential in the future. As   Qualcomm   ( QCOM ) looks to move away from the termination of the   NXP Semi.   ( NXPI ) merger, a big key is whether the company can shift away from reliant on the maturing wireless sector. The NXP Semi. deal promised a shift into connected cars, but Qualcomm alone is making a strong push into the promising IoT sector providing a solid long-term boost to my   investment thesis on the cheap stock. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details.   

NXP Semi slumped last week following a confluence of negative events. The company has plans to improve operating margins in the range of 500 basis points. The CFO forecasts aggressive stock buybacks with the stock trading in the $90s after already repurchasing 12% of the company. Last week,   NXP Semiconductors   ( NXPI ) slumped to yearly lows around $85 following weakness in the semiconductor segment, fears over China and possibly some disappointment surrounding the Analyst Day on September 11. The solid bounce again confirms my   investment thesis   of owning this semiconductor on these dips to $90 as the company itself snaps up billions worth of shares. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details.   

NXP Semi. trades back below the original Qualcomm takeover price of $110. The stock has far trailed the SOXX ETF since the merger agreement in October 2016. A flood of stock buybacks in the sector due to failed mergers will lift all boats. The Chinese regulator delays provide a unique play on  NXP Semiconductors ( NXPI ) that has a long-term growth opportunity tied into a potential short-term quick gain. Investors that step in now appear set to win either way. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details. 

Qualcomm (QCOM) increased the quarterly dividend by 9% to $0.62 per share. The annual dividend yield jumps to over 4% on this hike. More importantly, this sets the wireless tech giant up for a rally as the Broadcom (AVGO) buyout comes to a head.

The CEO of Broadcom (AVGO) went on CNBC to discuss the $82 offer to buy Qualcomm (QCOM) . Depending on the day, the offer is about a 30% premium above the current price. Broadcom CEO: Our offer for Qualcomm is compelling from CNBC . As Cramer points out, Qualcomm has a plan on the table to boost FY19 profits to about $7 per share. The offer isn't that compelling if the wireless giant can achieve that growth. Do you find the offer as compelling? More research: Qualcomm: NXP Semi. Closure Is Key Disclosure: Long QCOM. Please review the disclaimer page for more details.

Qualcomm has multiple paths to a higher stock price. Elliott makes strong case for a $135 deal price and Qualcomm can probably afford to pay the higher price. Either way, the lingering NXP Semi. deal is holding back EPS growth as Qualcomm had additional path to boost EPS numbers. As the outcome of the  NXP Semi.  ( NXPI ) merger lingers on,  Qualcomm ( QCOM ) shareholders just want closure on the deal. The company has multiple paths to higher earnings, but the NXP Semi. deal must get out of the way first. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please review the disclaimer page for more details. 

Qualcomm easily smashed FQ3 results as the market overlooked Chinese license deals. The company has more hidden upside in the low-balled FQ4 guidance. The stock remains incredibly cheap with a large cash balance, solid dividend, and several catalysts for revenue growth. My  investment thesis  in  Qualcomm (NASDAQ: QCOM )  for a while predicted that the market was overplaying the negatives of the Chinese license issues and the impact of losing modem sales to the top smartphone company. The question now is whether the stock remains a buy as Qualcomm surges above $60. Read the full article on Seeking Alpha.  Disclosure: Long QCOM. Please read the disclaimer page for more details. 

The top 10 net payout yields had a sizable loss that failed to match the small gain in the benchmark for April. The top 10 net payout yield stocks average yields of 18.1% to start May. American Airlines took over the lead with the highest yield at 27.0%. This article is a continuation of a monthly series, highlighting the top net payout yield (NYSE: NPY ) stocks, that was started back in June 2012 (see  article ) and explained in August 2012 (see  article ). The series highlights the best stocks for the upcoming month utilized in part to make investment decisions for the  Covestor model  that is now beating the S&P 500 for five out of the last six years. Please review the original articles for more information on the NPY concept. Read there full article on Seeking Alpha.   Disclosure: Long AAL, AMP, M, MSI, NTAP, QCOM. Please read the disclaimer page for more details.

The quarterly results for Qualcomm include lots of noise including typical weak guidance for the wireless chip giant. The company continues to use the strong balance sheet to reward shareholders including the recent 10% dividend hike. The stock remains a buy at $50 with several business related catalysts supported on the downside by strong stock buybacks. After the close on Wednesday,  Qualcomm (NASDAQ: QCOM )  did the standard beat and guide down for the next quarter. The stock traded down back to the key $50 threshold, but investors shouldn't necessarily lock onto the claimed weak guidance. Read the full article on Seeking Alpha.            Disclosure: Long QCOM. Please read the disclaimer page for more details.

After a weak end of 2015, the Net Payout Yields model on Covestor has seen a big rebound in 2016. After a couple of days in March, the model is up 0.6% for the year while the SP500 is down 2.8%. No trades took place in February with the last trade being selling Lowe's (LOW) and buying Qualcomm (QCOM) in early January. As Lowe's downsized buybacks and Qualcomm loaded up on buybacks with the stock selling off, the later became more attractive due to a higher net payout yield. Please contact Stone Fox Capital at info@stonefoxcapital.com  or contact Covestor to invest. Disclosure: Long QCOM. Please review the disclaimer page for more details. 

The top 10 net payout yields had a larger loss than the benchmark index in January. . The top 10 net payout yield stocks average yields of 20.8% to start February. . Motorola Solutions continues to hold the highest yields at 38.6%. . This article is a continuation of a monthly series, highlighting the top net payout yield (NPY) stocks, that was started back in June 2012 (see  article ) and explained in August 2012 (see  article ). The series highlights the best stocks for the upcoming month utilized in part to make investment decisions for the  Covestor model  that is now beating the S&P 500 for five out of the last six years. Please review the original articles for more information on the NPY concept.  Read the full article on Seeking Alpha.  Disclosure: Long AAL, AIG, BBY, CBS, CTL, GM, KSS, M, MSI, NTAP, QCOM. Please read the disclaimer page for more details.