Jim LebenthalQualcommQCOMHOLDSep 11, 2023

He just doubled his position. QCOM has momentum, up 19% the past month, their data centre business is growing and, like Meta, the market is now changing its mind about this company compared to a few months ago. QCOM isn't just a small chip manufacturer, but they also produce the internet of things, car parts and data centres.

A year ago, it was a supplier of chips for smartphones. Now it's participating in the AI race. Deal with AMZN just the other day. Not expensive, trading down on AI sentiment. Great promise. Continues to own and buy.

It made a huge move over the past month and he has sold recently. Historically it has been the largest smart phone semi-conductor company, There is still some AI potential in the background but some of its business has been rolling off with Apple.

Chart tells you everything you need to know. Anything that smells of AI has seen that kind of inflection. Screams dot-com 2000. Complete disconnect between the market and what AI is actually going to deliver.

He'd probably exit.

She trimmed it, after rising 76% the past year and trading now at 29x forward PE (vs. Meta's 16x). It's vulnerable here.

Dormant for many years, but haven't gotten credit for expanding into cars and the internet of things until now finally. Their chips in 2026 will go into Saudi data centres which will lift share.

Held back by focus on handset market, which hasn't grown in last number of years. Company is moving away from that -- getting into internet of things, automotive, autonomous driving. So its chips have application in new technology areas. Trades at 13x PE, much cheaper than peers. Yield is 2.16%.

Very linked to AAPL and the smartphone market. A lot of those companies are starting to do chips in-house. Dirt cheap, but there's a reason for that. Other opportunities elsewhere.

Owned it in the past. QCOM is cheap in this sector, but are tied to the handset market and that market lacks growth. Also, is bearish to semis and prefers software.

Are diversifying well away from cell phones to the internet of things and cars (double-digit growth in both). But their smartphone business underwhelms. That said, shares are too cheap. They need to increase share buybacks.

It is losing Apple's business but there have been contentious issues with them over the years and there are lots of other great things going on. It has a big business with the Android smart phone, which is much bigger than Apple was. Also it has built out a lot of business in the automotive sector and Meta Ray-Ban glasses. It is getting into data centres with chips for laptops that can help batteries last longer. AI will need better hardware and Qualcomm can enable that. Trades at 12X earnings which is at a big discount to the market.          Buy 24  Hold 20 Sell 1

Key enabler of all kinds of mobile connectivity, which still drives 75% of revenue. Fundamentals rank 9/10. Upside of about 11%. June quarter was solid with 10% revenue growth. Potential opportunity if margins hold up. Apple's shift to its own chips will be gradual.

Laggard in the group, and no sign that's changing. In fact, making an RSI new low today versus the market. When you're in a bull market, you want to own stocks that are participating. Unable to make a higher high since June 2024.

Plays nicely into Edge AI. Out of favour, surprising. Still a major supplier into the smartphone market. Follows it, but is waiting for a catalyst.

Trades at 12.5x PE, trades at a 41% discount to semi sector, and they've done a good job moving into EVs.