Qualcomm's Upside Potential Is Substantial But Risks Remain

Summary

• We view Qualcomm's dividend growth and capital appreciation upside potential quite favorably.
• The company is investing heavily in its automotive technology segment to capitalize on the proliferation of self-driving and semi-autonomous vehicles.
• Qualcomm is an incredibly shareholder-friendly enterprise with a bright growth outlook supported by secular tailwinds.
• There are downside risks to be aware of, and it is essential that Qualcomm remains a leader in 5G and future telecommunications technologies.
• In our view, Qualcomm is well-positioned to navigate exogenous shocks with its bright growth trajectory firmly intact.

Justin Sullivan

By The Valuentum Team

Qualcomm (NASDAQ:QCOM) is one of our favorite semiconductor ideas. The company is a leader in 5G technology, and we are huge fans of its large licensing business, which is incredibly lucrative. Qualcomm offers investors a nice combination

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Callum Turcan owns shares of DIS, META, GOOG, VRTX, and XLE. Qualcomm Inc (QCOM) shares are included as an idea in Valuentum's simulated Dividend Growth Newsletter portfolio. Apple Inc (AAPL) shares are included as an idea in both Valuentum's simulated Best Ideas Newsletter portfolio and simulated Dividend Growth Newsletter portfolio. This article is for information purposes only and should not be considered a solicitation to buy or sell any security. Neither Valuentum nor any of its affiliates own any securities mentioned in this article. Contact Valuentum for more information about its editorial policies.