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The replacement for Intel in a portfolio
It's been a while since I updated my opinion on Qualcomm (QCOM). The last article I wrote on the company was in July of 2023. My argument at the time was it
Qualcomm: Is It Still A Good Buy With China Risks In 2025
Summary
- Qualcomm remains a strong semiconductor investment, replacing Intel with a conservative IT play due to its high free cash flow, dividend growth, and significant share buybacks.
- Despite a recent dip, Qualcomm's Q4 earnings beat expectations with an EPS of $2.69 and revenue of $10.24B.
- Qualcomm's Magic Formula score of 30.9, though lower than 2023, still indicates strong returns on invested capital and earnings yield.
- With fair value at $216/share using an owner-earnings discount, Qualcomm is selling at a 26% discount, making it a buy with continued dividend growth and a pristine balance sheet.
I'm a full time value investor and writer who enjoys using classical value ratios to pick my portfolio. Long-term focused on low P/B, P/FCF, Owner Earnings discounting, PEG ratios, the Graham Number and an occasional net-net hunter. I also believe tracking earnings growth versus price appreciation is an essential element to any quality evaluation.I advocate self-indexing primarily using the Dow Jones Industrial Average as my index of choice combined with Joel Greenblatt's Magic Formula. This can help with tax efficiency owning an index’s or strategy’s underlying shares versus shares of an ETF.My previous working background is in private credit and CRE mezzanine financing for a family office. I'm also a fluent Mandarin speaker in both business and court settings, previously serving as a court interpreter. I have spent a good chunk of my adult working life in China and Asia.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM, AAPL, INTC, BA either through stock ownership, options, or other derivatives. 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.
The information provided in this article is for general informational purposes only and should not be considered as financial advice. The author is not a licensed financial advisor, Certified Public Accountant (CPA), or any other financial professional. The content presented in this article is based on the author's personal opinions, research, and experiences, and it may not be suitable for your specific financial situation or needs.
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