Stock price when the opinion was issued
He sold some when it got above $200, then bought back below $150. It's 2% of his portfolio; when it gets to 2.5%, he brings it back to 2%. If it goes below 2%, he brings it back up. Likes it long term.
The negative is repeated fights with AAPL; if the relationship ends, looking at $20 downside. Sexy side is AI on a chip; if that comes through, probably $70-80 upside.
He likes them without them buying Intel. It is one of the cheapest players in the chip space from a multiples perspective. For example Apple's P/E is near 40 but Qualcomm's is 25. They are working on new semi-conductor technology. He thinks it will re-visit its highs relatively soon, and considers it more of a trade than an investment. Buy 29 Hold 14 Sell 1
(Analysts’ price target is $215.96)He bought more. 14x forward PE and pays a 2.3% dividend yield. Good value. The ARM lawsuit was an overhang, but now resolved in QCOM's favour. This and the semis saw momentum in the first half of 2024. Business fundamentals remain intact; only QCOM can serve certain AI applications. Likes it for the long run.
The company sells royalties for its 3G and 4G chips. The 5G is coming out soon. There is a big demand, big demand from Asia. What is happening is that they are not paying for these licenses, so they are in a protracted fight. Chinese have accused them of being a monopoly. It’s tough doing business in China. In the meantime it is a fantastic company, and the thesis is not going away any time soon. Smart phones are going to need upgrading and this company will get licensing revenue over time. Balance sheet is terrific and they are buying back stock. Dividend is going higher. This is a wonderful entry point. 2.3% dividend yield.