Qualcomm (QCOM)

Reasonable multiple of 15x earnings. Problems with handset growth, affecting all participants, but it's a cycle. Will do very well coming out of it. Generative AI will be the next boon to handsets. Growing in automotive and internet of things.

Barring a sharp contraction in the global economy, the more cyclical semis should perform well going forward including QCOM.

Handsets are bottoming, so they will be back up again. Same goes with internet of things and autos. QCOM is a cheap stock and up only 18% this year. 

Just bought it as barbell position. For every AMD position, he wants to match it with a Qualcomm.

End market has been in a downdraft. Chart tends to be volatile, very cyclical. Semiconductor stocks are trades, not long-term holds. AAPL eventually wants to bring chips in-house, an overhang.

Share price flat.
Flat revenues accounting for slow share price growth.
Chip supply to automotive industry expected to lift earnings. 
Will continue to hold shares.
Overall trend of demand for chips expected to be good for the business. 

It trades cheaply at 9x PE with earnings power of $12/share. They have a $30 billion backlog in auto. So, the Apple deal runs out in 3 years, then they can switch to supplying autos to drive revenues.

The Apple news of striking a chip deal with Qualcomm surprises him in a good way. The three-year deal is a long time. The stock is up today and it's been very disappointing. Maybe both companies are learning to live with each other after a long history of lawsuits. Qualcomm remains a cheap company focused on IP needed for mobile telephony, an industry that has been terrible for 1.5 years (and he's waiting for it to bottom). China is key to their business, but China is having economic trouble these days. Maybe all the bad news is priced into this, but watch your back with this stock.

It buys Qualcomm time, but the difficulty in reaching this deal suggests how hard it is to produce your own chips and maybe it shows how much Apple needs Qualcomm.

Past 2-3 years tough for the business.
Share price very cheap - might be a good time to buy.
Strong company overall.
Hold if you already own shares. 

The litigation issues are sort of behind them. The whole semi-conductor demand has to come down. Foundaries are weak now. You could trim for profit.

Excellent company within tech sector.
High demand for chips with A.I. revolution.
Lagging performance good for buyers on weakness.

Leader in cellphone chip technology, but also in ADAS assisted driving for cars. As these technologies spread, stock will do well. Stock sold off as cellphone volumes dropped and AAPL started making its own chips. Into EVs big time. Yield is 2.61%.

Not a value trap, because the cash flows are strong with probably $10 billion this year. They can buyback shares with that cash at relatively cheap prices.

Owns shares in company.
Hasn't performed as well as expected, but still a strong company.
Good exposure to A.I.
Quality company with low trading multiple.