Brian Belski Qualcomm QCOM-Q BUY Jun 28, 2024

Has a low PE compared to fellow chipmakers. They recently suffered from over-inventory, but have mostly worked through this. What's interesting in QCOM is their chips used in cars and the internet of things, so they have good growth potential.

It reports Wednesday. Good risk/reward with shares rallying after an earnings beat but not declining much after a miss. They may buy Intel, which is rallying these days.

One of the major chip maker names to consider for your portfolio. Adds value to the supply chain.

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.

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

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.

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.

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.

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

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.