Saturday, August 13

JPMorgan: Qualcomm is the best investment for 2022

The chip signatures emerge slowly, but still immersed in the semiconductor crisis. Qualcomm You have two great opportunities to diversify your business with the transition of Apple devices to 5G and the metaverse. Therefore, the Analist of JPMorgan Chase Samik Chatterjee named the stock the best investment for 2022 according to Aparna Narayanan en Investors.

On Monday, Chatterjee hinted at easing supply chain pressures and diversifying Qualcomm’s products as the key.

Qualcomm shares consolidated amid a report that Apple could make its own modem chips for the iPhone, ditching Qualcomm.

They also rose in November thanks to earnings and after Qualcomm presented its future in the light of Apple.

As of September, 3,422 funds owned Qualcomm shares. Chip shares account for eight-quarters of the fund’s share on the rise, according to the IBD Stock Checkup tool.

Successful results

On November 4, the chipmaker easily surpassed the earnings estimates for your fiscal fourth quarter. Year after year, Profits they increased a 81% while the sales they increased a 43%, according FactSet. And it gave a bullish orientation for the current quarter.

On November 16, the CEO Cristiano Amon said that the total addressable market will increase from $ 100 billion today to $ 700 billion in the next decade. Growth comes from expansion to automotive chips and Internet of Things devices for industrial and consumer applications, while reducing dependency on Apple.

Amon now expects his company’s supply problems to improve substantially by the end of the year, including meeting demand for the second half of 2022. Previously, Qualcomm expected to have chip limitations until early 2022. Shortages affected products for phones, IoT devices and Cars.

Analysts expect earnings per share Qualcomm grow a 22% in 2022 as the sales increase a 15%, dice FactSet. Both earnings and sales are projected to grow further in 2023, but at a single digit rate. The company grew again in 2020 after several years of downturns.

In recent years, Qualcomm’s earnings fell due to company and industry specific problems. Earnings headwinds eased as sales increased. 5G wireless technology. What’s more, Apple y Huawei returned as clients, after the firm resolved legal disputes over patents and license payments.

In March, the United States abandoned a four-year antitrust battle against Qualcomm.

Of the 31 Wall Street analysts, 21 qualify the shares as a purchase Y 10maintain, while nobody has a sale, according to FactSet.

The future of the firm

Qualcomm has two main sources of revenue: manufactures integrated circuits and systems software for device manufacturers. It also has wireless patents, which generate income from licenses or royalties.

But the chip business faces challenges as customers bring chips in-house. Your licensing business faces scrutiny in the US and around the world.

The equipment and services business represents the 81% of total revenue and the licenses of the rest. While smaller, licensing is more cost-effective and has a greater competitive advantage.

The chips 5G de Qualcomm drive the last iPhones de Apple. They also feed Android devices. Apple reports working on its own 5G modem they have repeatedly affected the firm’s actions.

According to Qualcomm’s leadership, 5G networks are being built much faster than expected. They will allow ultra-fast downloads and enable things like connected factories.

The baseband chips supplied by Qualcomm enabled previous iPhones and the smartphone revolution. In fact it is the world’s largest supplier of mobile phone chips. But it is, above all, “the administrator of patents” of wireless technology, based on Morningstar.

In addition to smartphones, Qualcomm chips will drive the world’s first 5G personal computer. 5G chips and devices will eventually power the Internet of Things, autonomous cars, and augmented reality applications.

Qualcomm and Tencent have partnered on mobile gaming devices. It’s a huge win for the US chipmaker: The mobile games powered by 5G should support experiences in real time and multiplayer.

Now Qualcomm, like Nvidia, sees a growth opportunity in the metaverse, a next-generation immersive internet platform.

Qualcomm is trading at $ 183.49 and the Ei indicators are bullish.

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