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Monday, Aug 12
Qualcomm to use cash mountain to maintain dominance
- Qualcomm (QCOM) intends to use its substantial $30.4B of cash to help it maintain its strong position in the market for chips for mobile devices, CEO Paul Jacobs says.
- "We want to drive the new technology into the market as quickly as possible," Jacobs says. Having a "good war chest" will enable the semiconductor company to keep investing even when the economy worsens.
- Despite strong revenue growth, Qualcomm's shares have languished vs other technology stocks in the S&P 500, prompting calls for Qualcomm to boost its dividend and stock buybacks. While Jacobs says he's listening to those calls, he has no intention of taking on debt to fund increased payouts.