However, the stock setup is somewhat unique when combining these two investment goals for intelligent buy-and-hold investors.įor starters, QCOM is trading under its 10-year averages on basic price to trailing earnings, sales, and cash flow results. Qualcomm is not the cheapest Big Tech stock I can find, and it is not the fastest growing company with its enormous size. My current bullish argument is explained like this. For investors, QCOM’s +55% total return from my previous article has bested the equivalent S&P 500 +30% gain by almost double. For the most part, I have been in the bull to hold camp ever since. My last article on Qualcomm was a bullish forecast at $90 per share in June 2020, linked here. Both numbers stack up positively against the major semiconductor concerns on planet earth. At that point, an earnings yield of better than 10% on your investment and 2.3% forward cash dividend yield may be available (assuming a small increase in the payout this year). My view is another 10% decline under $120 a share, where it has found support over the last 12 months of trading, would provide another great buy opportunity (even if $110 or $100 quotes appear by autumn). Entering new markets all the time (car electronics lately) and with thousands of existing customers, its valuation on current and projected numbers is getting interesting. However, the valuation and growth story at Qualcomm are still quite bullish over the long run. In addition, a recession will likely hurt business performance later in 2022 and most of 2023, but this macro problem is affecting all semiconductor enterprises. On the news front for the company, Apple ( AAPL ) is trying to invent and utilize its own chipsets for manufactured gadgets, cutting out a sizable chunk of Qualcomm sales, but success has been slow in arriving. While we all debate what Intel ( INTC) is worth, and the masses remain focused on the growth stories at Advanced Micro Devices ( AMD ) and NVIDIA ( NVDA ), Qualcomm’s strong ties to smartphone sales seem a little boring. QUALCOMM Incorporated ( NASDAQ: QCOM) is a leading semiconductor name that has not received the bullish attention it deserves in 2022.
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