Qualcomm Incorporated is a company based in the United States. The company designs, manufactures, sells, and licenses semiconductor products around the world. The company manufactures SOCs (system-on-chips), wireless modems, and other parts found in wireless devices. The company was founded in 1985.
Why You Should?
- Qualcomm is a great growth play in an investor’s portfolio. The company will continue to see higher demand for its products and services as wireless devices like phones become more popular and technologically advanced. This makes the company a great long-term investment and is a great investment option.
- Qualcomm has been benefited from the COVID-19 pandemic as the sales of phones and other wireless devices rose as people stayed indoors. Companies like Apple and Samsung also sold more phones and other wireless devices which caused a further rise in demand for the company’s products. This benefited the company go through this tough time.
- Under a Biden administration, the company might see contracts to shift semiconductor jobs back to the United States. Biden will also reduce geopolitical tensions, something that will help Qualcomm sell more products to companies in countries like China (something that the previous administration blocked). This will benefit the company and its investors.
- The company continues to see strong growth due to the rising popularity of 5G devices. From 5G wireless modems to more powerful chips that utilize 5G, Qualcomm has a wide range of products that it can sell to companies to further grow 5G wireless devices. This 5G growth will benefit the company and its investors.
- The company sells its products to large customers like Apple, Samsung, One Plus, and many others. This will help the company move large amounts of products as these large manufacturers will need Qualcomm hardware to sell wireless devices like phones. This will benefit the company and its investors.
Why You Should Not?
- The company faces tough competition in the semiconductor industry from companies like Broadcom, Apple, Intel, AMD, Nvidia, and many others. This competition might hurt the company and its investors.
- The COVID-19 pandemic has also hurt some aspects of the company’s business. From parts shortages to supply chain issues, the company has had to face its fair share of issues during this tough time. This hurt the company and its investors.
I think that Qualcomm is a great long-term investment due to its position as a good growth play, positive impacts from the pandemic, positive impacts from a Biden administration, 5G growth, and its sales to a few large customers like Apple and Samsung. However, tough competition and negative impacts from the pandemic might hurt the company and its investors in the future.