Qualcomm, Inc. Stock Looks Set For A Rebound, Should You Buy Now?

Another example of Qualcomm's legal trouble easing is an argument presented by a recent MarketWatch post about the FTC case being dropped by the Trump administration which seems very reasonable. To quote the post: " hundreds of millions of tax dollars are at stake, believes Morgan Stanley analyst James Faucette. Qualcomm pays most of its taxes in the U.S., whereas Apple earns a lot of its income abroad. Shifting profits to Apple from Qualcomm by ruling against Qualcomm would reduce taxes paid to U.S. federal, state and local governments, notes Faucette." There are arguments against Qualcomm as well, but as days pass by and things get much clearer, it seems things are not as gloomy for the world's largest smartphone chipmaker. Investors seem to have overreacted to Qualcomm's legal woes.

Qualcomm Is All Set To Ride The IoT Bandwagon.

The San Diego-based component maker is taking the lead to capture the booming IoT opportunity. A latest BusinessInsider research suggests that there will be an investment of "$6 trillion in IoT between 2015 and 2020, which will yield $12.6 trillion ROI over the next decade." The BI research also "expects that more than 24 billion IoT devices will be installed globally in 2020, and the vast majority of these will fall into the small, low-power category." Qualcomm has stepped up its efforts to capture the massive opportunity in front of it by its latest moves. The world's largest smartphone chipmaker has announced its IoT chips "with support for Android Things OS, integration with Amazon Web Services, and two systems-on-chips that aggregate a bevy of standards." A number of Qualcomm's offerings are being showcased at Mobile World Congress in Barcelona later this week. It is also known that Qualcomm is "first to add support for Google's Android Things OS on its 4G LTE processors". As a ZDNet post puts it Qualcomm wants to "Be the Swiss Army processor for IoT deployments." All these advancements are from Qualcomm alone, and once the NXP Semiconductor (Nasdaq:NXPI) acquisition is over, the chipmaker's IoT portfolio will become very diverse and large, to tap the Multi-billion dollar opportunity.

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Disclosure: Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a ...

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