Michael Vi
- Qualcomm’s expertise in the smartphone business effectively translates into the automotive industry.
- Apple and Samsung are backward integrating into Qualcomm’s business since its offerings are reaching a point where it just needs to be good enough.
- ARM’s prospect in the PC market, where x86 is currently dominant, is overstated.
- Due to the threat of losing Samsung and Apple’s business, I will call a ‘Hold’ for this stock.
Introduction
Qualcomm Incorporated (NASDAQ:QCOM), one of the leading semiconductor chip-making companies in the world, is currently facing challenges as two of its major customers, Apple (AAPL) and Samsung (OTCPK:SSNLF), are backward integrating into its business. While Qualcomm is diversifying its business into PC and Automotive to offset the threat of losing significant revenue from its two biggest customers, these efforts won’t fully compensate for this impact. Therefore, I’m calling for a ‘Hold’ on this stock.
READ FULL ARTICLE HERE!
