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New Qualcomm Deal Augurs Big Things in 2022

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Qualcomm Inc. (NASDAQ:QCOM), a leading wireless technology innovator and a driving force behind the development, launch and expansion of 5G, announced a deal on the final day of 2021 that is grabbing the attention of investors around the world.

On Dec. 31, subsidiary Qualcomm Wireless Communication Technologies (China) Ltd. announced along with Z-One Tech a strategic cooperation relationship to deliver intelligent cockpit experiences by utilizing the fourth-generation Snapdragon Cockpit Platforms with Z-One Techs Galaxy Full Stack Solution 3.0, according to a release.


Z-One Tech is a platform and software technology company that focuses on developing high-value-added modules for smart vehicles.

Qualcomm has chip technologies and products, which are well-aligned with Z-Ones innovation in the field of intelligent car electronic architecture. Snapdragon Cockpit Platforms will lay a foundation for in-vehicle experiences in the next-generation intelligent vehicles.

The Snapdragon Cockpit Platforms are one of the most comprehensive solutions in the automotive industry, the statement said, designed to address the automakers transition to evolved automotive architecture with the fusion of compute, performance, artificial intelligence (AI) and safety, meeting user demands for digitally advanced cockpit experiences."

Lei Xian, vice president of sales and business development from Qualcomm International (Shanghai) Co. Ltd., also commented on the platform.

The digital cockpit has become a leading differentiator amongst customers. As a key component of the Snapdragon Digital Chassis technology, Snapdragon Cockpit Platforms will lay a powerful performance foundation for in-vehicle experiences in the next-generation intelligent vehicles, he said. Were excited to work with Z-One Tech to explore the intelligent automobile cockpit and E/E architecture to help drive transformation of driving experiences.

In trading last week, Qualcomm closed at $186.20, marking a 0.75% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%.

Investors rightly expect great things from Qualcomm this year. The company will be looking to display strength as it nears its next earnings release, reported Zacks Equity Research last Wednesday. On that day, Qualcomm is projected to report earnings of $3 per share, which would represent year-over-year growth of 38.25%. Meanwhile, our latest consensus estimate is calling for revenue of $10.42 billion, up 26.51% from the prior-year quarter.

USNews.com reported that Nancy Tengler, chief investment officer at Laffer Tengler Investments, says the company is in the sweet spot of 5G build-out.'" Qualcomm "has a leading position in the mobile handset market and should get a boost from the ongoing 5G upgrade cycle," added Anthony Minopoli, chief investment officer with Knights of Columbus Asset Advisors.

Looking at the full year, Zacks consensus estimates suggest analysts are expecting earnings of $10.48 per share and revenue of $39.38 billion. These totals would mark changes of +22.72% and +17.32%, respectively, from last year.

With a good number of catalysts to look forward to in the new year and a glimpse of strength already in the rear-view mirror, the stock seems to be a relatively cheap way to get some meaningful growth, reported Nasdaq.com on Friday.

I am bullish on Qualcomm stock for 2022, Joey Frenette of TipRanks said, and think it still has room to the upside despite sitting close to all-time highs. The piece added, With a slew of connected devices coming in fast, there may not be enough 5G chips to go around, even with new challengers in the field. For that reason, QCOM stock has a very compelling value proposition going into 2022.

This article first appeared on GuruFocus.