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

It looks like Qualcomm may give Intel for a run for its money in the PC-Tablet market as well. A recent Wccftech post reports that "Qualcomm’s Snapdragon processors might make it on Windows 10 PCs claims Chinese supply chain. Sources report that manufacturers have already started on Windows 10 PCs. These will become available in the second half of this year. The report goes on to further suggest that testing on the Snapdragon 820 for Windows 10 with 4GB RAM is able to run Edge, HD video, directional filters and background multi-tasking." We all know Qualcomm had a tie up recently with Microsoft (Nasdaq:MSFT) to develop Windows 10 based PCs on ARM chips. Though the above reports are speculations but the things seem to be in line with Qualcomm's plans for diversification with sluggish smartphone sales worldwide.

Putting It All Together

Qualcomm has one of the best patent portfolios in the communications industry. The chipmaker still outspends its peers in mobile chip development and Qualcomm has tried to improve the efficiency of its R&D spending by cutting down on R&D lately. Qualcomm's product line-up highlights the immense growth opportunities ahead of it irrespective of the risks pertaining to its licensing business. We can expect more insight into Qualcomm's future growth opportunities at Mobile World Congress in Barcelona later this week. Investors seem to have reacted with a knee-jerk reaction to Qualcomm's legal woes. Apart from its growth opportunities, QCOM stock offers an added advantage of regular stock buybacks and a healthy dividend yield of nearly 4%. QCOM at these levels looks very cheap given its growth opportunities. Qualcomm stock is a buy at these levels, risks due to legal woes persist but they seem to be priced in. Long-term investors should consider going long on QCOM stock.

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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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