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.   

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. 

Summary Qualcomm announced a large buyback plan with an accelerated portion to start during FQ3. While the headline is attention grabbing, stock option grants could dilute the impact. Research suggests only loading up on a stock based on buybacks after they occur and not prior. The recent major stock buyback announcement by Qualcomm (NASDAQ: QCOM ) obtained a lot of attention. The headline grabbing news was exciting for shareholders, but the real news is whether the company spends the money without granting a ton of stock options in the process. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

No, this isn't a next generation chip from Qualcomm (QCOM) . After the bell, Qualcomm reported Q2'12 results that handily beat estimates, but the company provided disappointing guidance for Q3'12. Naturally this disappointed investors to the tune of an initial 5% loss in after hours trading. Should investors react negatively to such guidance or blow it off as management sandbagging? It has become commonplace in the technology world to provide off-the-wall pessimistic guidance in order to not disappoint investors when actual results are reported. The end effect though is that investors get hurt in the process of having a stock sold off following earnings. This appears to be the norm for tech stocks whether born out of the tech collapse in 2000 or due to the success of Apple (AAPL) with a history of guiding below reality. Why not follow the leader? Read the full article at Seeking Alpha. Disclosure: Long AAPL. Please review the disclaimer page for more details.