Qualcomm stock is a safe bet in the high-tech space. The economic and health crises of 2020 have had no impact on the stock's rating. This guide provides information about the company that can help you make the right choice for your investment project.
Qualcomm is an American company based in San Diego, California, that specializes in telecommunications. The company was founded in 1985 as a startup. In 1989, it developed the Code Division Multiple Access (CDMA) technology that revolutionized the communication sector. Recently, one of its most celebrated products was the Snapdragon processor.
Qualcomm's primary revenue generating activities are the sale of communication systems, CDMA in the form of integrated circuits, software and voice and data transmission systems, the sale of wireless communication systems, internet access, decryption and satellite communications and the sale of licenses to companies that use these technologies.
Most of its customers are phone manufacturers, such as Samsung and Apple, followed by operators and service companies.
Qualcomm's shareholder base is composed as follows:
To remain competitive, Qualcomm has teamed up with major companies to help develop new communication technologies. Qualcomm is playing alongside the big boys in the high-tech field, such as Apple, BlackBerry and Samsung.
There are several large groups and companies that are in direct competition with Qualcomm. Competitors to watch closely include TSMC, Intel Corporation, Samsung, Broadcom, Hynix, Toshiba, NXP, Texas Instruments, Micron and Huawei.
For 2020, Qualcomm group reported revenue of 23,531 MUSD against 24,273 MUSD in 2019. The company made a net profit of MUSD 5,198, in 2020.
The group's sales are separated into two categories: communication systems (around 70%) and license sales (around 30%).
The geographic breakdown of Qualcomm's revenue is as follows:
The Qualcomm Group stock is listed on the NASDAQ market. The market capitalization is over 151 168 MUSD. The number of shares outstanding is 1130.
The evolution of 5G technology could influence Qualcomm shares. As the group is among the major players in telecommunications, the success of this innovation at the global level can be decisive for its rise.
The expansion and diversification of the group's business lines are to be followed closely, such as investment in graphic and multimedia resources or mobile banking solutions.
One of its direct competitors, Huawei, is experiencing difficulties as a result of American sanctions. It is therefore important to take an interest in the future of this company as well as the evolution of American economic relations with Asian countries.
It is also important to take into consideration the companies that are related to Qualcomm. For example, Taiwan Semiconductor Manufacturing Company (TSMC), which produces processors for Qualcomm, has been experiencing problems, which has resulted in a decline in the company's performance.