|Bid||78.15 x 900|
|Ask||78.20 x 2200|
|Day's Range||78.01 - 78.58|
|52 Week Range||49.10 - 90.34|
|Beta (3Y Monthly)||1.53|
|PE Ratio (TTM)||28.75|
|Earnings Date||Nov 6, 2019|
|Forward Dividend & Yield||2.48 (3.34%)|
|1y Target Est||79.35|
Qualcomm (NASDQ:QCOM) finally struck a blow against Apple (NASDAQ:AAPL) and managed to settle all of the court cases that have been going on between the two companies. This has been a bigger victory for Qualcomm than Apple, as Apple would be paying Qualcomm an undisclosed sum of money and agreed to a six-year license agreement and a two-year option to extend. Apple and Qualcomm will be stuck together for quite a while diminishing speculation over Apple’s willingness to develop mobile modems in-house given the length of the licensing deal with Qualcomm. Since the settlement news broke, Qualcomm stock skyrocketed nearly 40%.With Qualcomm positioned to sell meaningful modem volumes in FY’20 tied to Apple’s shipments of 5G capable iPhone’s, the business narrative has improved considerably, as Qualcomm went through a dry-period from 2017 to 2018 as Apple transitioned to Intel 4G LTE chips while the lawsuits continued.Wedbush Securities analyst Daniel Ives mentions in a report on Tuesday:> “While Qualcomm expects a more meaningful financial impact ($2 of incremental EPS as shipments ramp) and thus the stock was up 23% after the announcement hit the tape, Apple (and its investors) can also rest a little easier as the risks of 5G and settling with Qualcomm take an overhang away from the name. The only financial details we are aware of is Qualcomm’s expected $2 EPS impact from the Apple settlement. Consensus expectations for Qualcomm’s 2020 fiscal year hover at $4.35 dil. EPS, so an additional $2 impact on FY’20 estimates during iPhone shipment ramp represents a 46% increase to current consensus estimates. When Qualcomm reports Q2’19 earnings on May 1st, 2019 we will have more details relating to financial impact, but initial indications sound good for Qualcomm shareholders.Given Tuesday’s announcement of Apple settling with Qualcomm, Intel has officially exited the mobile modem market. Intel’s public statement on April 16th, 2019: “Intel Corporation today announced its intention to exit the 5G smartphone modem business and complete an assessment of the opportunities for 4G and 5G modems in PCs, internet of things devices and other data-centric devices.” Bob Swan (Interim CEO of Intel) goes onto mention, “We are very excited about the opportunity in 5G and the ‘cloudification’ of the network, but in the smartphone modem business it has become apparent that there is no clear path to profitability and positive returns.”Since Intel’s only customer i.e. Apple bailed and settled the lawsuit with Qualcomm, the sudden exit from mobile modems makes sense for Intel. It was a money losing business, hence Intel’s stock rallied by as much as 4.34% in the after-hours session, as it implies that Intel’s going to announce a major restructuring tied to its mobile division, which should lead to some cost leverage in the near-term.Apple, on the other hand had a flat session following the announcement of settling with Qualcomm. Mainly because, it was broadly anticipated that Apple wouldn’t have a 5G device made available by 2020, and the cost to develop a modem in-house wouldn’t be as economical as sourcing the technology from a successful 3rd-party like Qualcomm. It’s certainly not bad news for Apple, as it diminishes the worries or concerns of a delayed 5G iPhone, and with so much pent-up upgrades anticipated in the next two-year window, the release of a 5G iPhone might move the needle to make the Qualcomm settlement worthwhile for Apple shareholders.The smartphone market is more mature, so losing market share in the high-end due to the absence of a key upgrade or feature like 5G versus other handset makers didn’t seem all that worthwhile. For Apple shareholders, it’s still a good scenario as it increases upgrades intentions among Apple’s installed base of near 1B iPhone users when 5G eventually gets released next year. Read more: Should Investors Buy Qualcomm (QCOM) Stock on 5G Strength? More recent articles from Smarter Analyst: * 3 Blue-Chip Stocks to Buy for an Earnings Bump * 3 Monster Growth Stocks That Will Keep Soaring in 2020 * New Age Beverages (NBEV): Don’t Chase Headlines * 3 'Strong Buy' Energy Stocks to Consider Ahead of Earnings
Over recent years, the Qualcomm (NASDAQ:QCOM) narrative has been dogged by various pressures and controversies. At first, Singapore-based Broadcom (NASDAQ:AVGO) proposed an aggressive $117 billion takeover bid for QCOM stock. But in a move that had bipartisan support, President Donald Trump axed the hostile takeover, citing national security concerns. That gave Broadcom little choice but to back down.Source: nikkimeel / Shutterstock.com The other pressing issue impacting Qualcomm stock was the underlying technology firm's legal battle with Apple (NASDAQ:AAPL). Notably, Apple had major grievances with Qualcomm's patent licensing practices. From its perspective, QCOM charged Apple royalty fees for technologies unrelated to the chipmaker.Famously, Apple CEO Tim Cook once quipped that Qualcomm's business practice was like "buying a sofa" from a company that charges "a different price depending upon the house that it goes into." On the other hand, Qualcomm accused Apple of using its patented tech free of charge.InvestorPlace - Stock Market News, Stock Advice & Trading TipsEither way, whether you're on team Qualcomm or team Apple, the bottom line was this: The bitter dispute didn't serve the longer-term case for QCOM stock or AAPL shares. While the former has the innovative prowess, the latter has the rabid fan base. This was a classic knife fight in which both sides were not going to get away unscathed. * The 7 Best Penny Stocks to Buy Fortunately, cooler heads prevailed, with both organizations squaring away their differences. From this new reality, I believe Qualcomm stock has a net positive pathway to steady upside gains.Clearly, the biggest distractions for QCOM stock have been eliminated. As InvestorPlaces's Chris Markoch stated recently, this is probably the beginning of the QCOM narrative. The 5G rollout will spark multiple revenue streams. 5G Opportunities Facilitate a "Slow Burn" for QCOM StockFirst and foremost, the settlement between Qualcomm and Apple creates growth opportunities for at least the next few years. As the leader in 5G modems, QCOM can fill a gap that has previously impeded Apple. Of course, this is a big positive for Qualcomm stock.However, this freshly restored relationship may change over time. In the backdrop of the legal battle, Apple looked to Intel (NASDAQ:INTC) to provide 5G modems. When that plan failed, Apple bought Intel's 5G modem business unit. It's going to take some time to catch up, but AAPL will eventually go in-house with its smartphone semiconductors.Luckily, the Apple business is just one component of the overall 5G picture for QCOM stock. Recently, Qualcomm revealed that it has partnerships with over 30 original equipment manufacturers to launch 5G fixed wireless access equipment. With a target time frame of next year, investors won't have to wait long to start seeing results.Utilizing Qualcomm's Snapdragon X55 5G Modem-RF System as a reference architecture, this 5G FWA equipment will facilitate home- and enterprise-level 5G internet service. What makes this FWA platform impressive is its modularity. Because it can accept "virtually any combination" of 5G spectrum and modes, telecom firms should be able to incorporate this tech into their existing 5G infrastructure.Granted, this might sound like granular nerd talk. However, the modularity of Qualcomm's FWA is crucial for Qualcomm stock. Contrary to what some might believe, the 5G rollout isn't a light switch. Instead, it's a gradual transition.Telecom firms must migrate the existing spectrum to accommodate 5G over time. During this transition, overlap between old and new tech will occur. That's why the FWA equipment's modularity is critical, which essentially provides a bridge for telecom networks. The Lingering Trade WarDespite Qualcomm's dominant presence in 5G and the opportunities that it presents, not everything is positive for QCOM stock. Most notably, the U.S.-China trade war presents a serious risk, not just to Qualcomm but the broader tech industry.In its most recent quarter, QCOM disappointed Wall Street with sour revenue figures. However, management didn't include licensing revenue with Huawei due to a royalties dispute. Moreover, the transition to 5G means less demand for 4G-related equipment.While the trade war may limit Qualcomm stock in the nearer term, ultimately, I see this situation as longer-term positive. I say this because for this particular circumstance, China needs Qualcomm more than Qualcomm needs China.As China and other emerging markets witness broader rises in consumer strength, they'll want the best. Thus, merely doing 5G as a technicality won't be enough. Clearly, QCOM is the 5G leader, which is why our international adversaries want to steal from it.As such, the trade war has exposed China's shady business practices while presenting American companies as virtuous victims. The drama may impact Qualcomm now, but again, in the long run, even geopolitics could be favorable to QCOM stock.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post Thanks to 5G, Qualcomm Stock Can Enjoy a Slow and Steady Ride Higher appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Johnson & Johnson, Boeing, Pfizer, Qualcomm and Mitsubishi UFJ Financial
Just six years ago, Microsoft (NASDAQ:MSFT) felt like a tech company that was being left behind. Steve Ballmer was on his way out as CEO, and MSFT was flailing as the success of Apple's (NASDAQ:AAPL) iPhone and Alphabet's (NASDAQ:GOOG,NASDAQ:GOOGL) Android threatened the company's PC-focused business.Source: Peteri / Shutterstock.com MSFT stock ultimately lost about a quarter of its value before Ballmer left. Since Satya Nadella took over as CEO in 2014, Microsoft has turned its business around and Microsoft stock has been on fire, reaching a trillion-dollar market cap. MSFT was largely flat through the summer, but with its Q3 earnings coming in a week, MSFT stock is a solid buy. * 7 Reasons to Buy Canopy Growth Stock From Struggling Tech Giant to a ResurgenceWhen Satya Nadella became the CEO of Microsoft in early 2014, the company was struggling. It was in no danger of disappearing, but its status was declining along with the popularity of the PC. Just months before Nadella became CEO, the company took a $900 million write down on its disastrous Surface RT tablet. Steve Ballmer's 2013 acquisition of Nokia's phone assets had turned into an $8 billion loss by 2016. Windows 8 -- the 2012 attempt to bring Windows into the era of tablets and smartphones -- was a failure. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe new Microsoft CEO pushed the company to adapt. He flattened the organization, trimming a layer of middle management. Windows 10 is a modern operating system that avoids alienating long-time users, while focusing on security. The company has released versions of Office that are optimized for tablets, and it pushes subscriptions over outright purchases.Subscription services have also transformed the company's Xbox gaming division. Its Surface products have evolved into best-in-class devices that embrace current technology trends. It recently released the Surface Pro X tablet which is powered by a custom ARM chip from Qualcomm (NASDAQ:QCOM). The company is also introducing a Surface phone in 2020, the Surface Duo, that runs on Android.Perhaps the most important move Microsoft has made during Satya Nadella's tenure has been its focus on cloud computing. The growth of Microsoft's Azure cloud computing service has been phenomenal, and it's now number two in the world, trailing only Amazon's (NASDAQ:AMZN) AWS.In the last reported quarter, Azure's sales grew 64% and the Intelligent Cloud division, which includes Azure, generated $11.4 billion of revenue, accounting for a full third of MSFT's overall top line.Embracing cloud computing has been a big part of the growth that has powered MSFT stock price higher. The Satya Nadella Effect on MSFT StockCEOs have a tremendous influence over the success of the companies they run, and their stocks usually reflects their performance. In January 2000, Steve Ballmer took over a Microsoft that was a key player in a PC market that had yet to peak. MSFT stock was trading at $53.91 when he took the reins and when he left on February 4, 2014, a struggling MSFT was trading at $36.35. In the five and a half years since Satya Nadella has been CEO of the company, Microsoft stock has increased in value by 286% and its market cap has broken through the trillion-dollar ceiling. Microsoft Stock Is a BuyIf you want a high performance tech stock in your portfolio, you should be looking at MSFT stock. You might want to think about pulling the trigger soon, before it reports earnings on Oct. 23. MSFT stock has consistently climbed for half a decade, and all signs indicate that the trend will continue. Of the 32 analysts polled by CNN Business, 27 have "buy" ratings on Microsoft stock, while three have "outperform" ratings on MSFT stock.The analysts' median 12-month target price is $159.00. Even the most bearish target among the group is $151.00, which is still above the $138.30 level at which MSFT stock was trading shortly before 11 AM today. In other words, an investment in Microsoft stock at this point is about as safe as it gets.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post Going Into Earnings, Microsoft Stock Is a Buy appeared first on InvestorPlace.
About a week ago, things were looking much simpler for Intel (NASDAQ:INTC) stock bulls. On Oct. 11, the U.S. and China announced a partial deal in the ongoing trade war. This was welcome news for semiconductor stocks such as INTC that have been trading in a range.Source: dennizn / Shutterstock.com However, it quickly became apparent that the trade deal wasn't really a deal at all. It was more of a truce. Both sides made concessions. But there was no agreement on the issues that would make a difference for semiconductor stocks.This means current or prospective investors in INTC stock are back to trading on other news surrounding the stock. Fortunately for Intel, it has recently made a significant investment that may help change the current narrative.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Making a Big Bet on 5GOn Oct. 15, Intel announced an agreement to purchase a software business, Smart Edge, from Pivot Technology Solutions for $27 million. * The 7 Best Penny Stocks to Buy Smart Edge is software that focuses on "edge computing." Edge computing splits data and stores it closer to users, making computing devices respond faster. The software runs on Intel chips. This is allowing Intel to carve out a niche in the 5G space. This will be a critical opportunity to expand its revenue stream beyond its two large business segments of personal computers and data centers."We plan to take full advantage of our combined technologies and teams to accelerate the development of the edge computing market," Dan Rodriguez, a general manager of the network computer division in Intel's data center group, said in a statement. Why Did Intel Stock Drop?Intel stock was trading around $60 per share until it released first-quarter earnings. The company gave downward revenue guidance of $69 billion, which was $2 billion lower than analysts' estimates. Perhaps more concerning to investors is that if that revenue number held it would mark a decline a 2.5% decline in year-over-year revenue. In 2018, Intel posted revenue of $70.8 billion.But the stock lost nearly 25% of its value. Was this a disproportionate response? Perhaps. But what has to be concerning for investors is that INTC stock has attempted and failed to breach a crucial level of resistance at around $53 two separate times.The general consensus is that Intel stock is paying too steep of a price. However, there's a difference between what a stock should be doing and what it actually is doing. The problem for INTC stock has been a steady stream of news that is giving investors pause. Hampered By Production DelaysUnlike most semiconductor companies, Intel manufactures its own chips. This has been a strategic advantage for the company. But at the moment, it is proving to be an obstacle. The company has struggled in its transition from 14-nanometer chips to 10-nanometer chips. When Advanced Micro Devices (NASDAQ:AMD) introduced 7-nanometer chips, original equipment manufacturers became frustrated with Intel's chip shortage and started giving business to AMD. This has been one of many negative drags on the stock.AMD outsources its CPU production to dedicated foundries. One of those is TSMC (NYSE:TSM), which is now ahead of Intel in the manufacturing process. While Intel says it will resolve its 14-nanometer shortage during 2019, DigiTimes recently reported that the shortage may last until next year. INTC Stock Looks Undervalued at the MomentIntel is trading at price-earnings ratio of below 12 (11.88 as of this writing). That is significantly less than rivals Microsoft (NASDAQ:MSFT), AMD and Qualcomm (NASDAQ:QCOM). Those companies have PE ratios of 29.58, 93.66 and 21.20, respectively. But it's also significantly below its historical trading level of 15-times earnings or higher.If INTC stock were valued at 15 times earnings right now, it would have a stock price of approximately $64.50 per share. But it's not trading at that multiple. And analysts predict that INTC will post a decline in non-GAAP earnings for both Q3 and Q4 earnings on a YOY basis. This makes a case that INTC stock could be going down before it goes up.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post Has Intel Stock Found a Catalyst? appeared first on InvestorPlace.
(Bloomberg) -- Samsung Electronics Co. said it will issue a software update early next week to address a major security vulnerability that’s emerged on the company’s flagship Galaxy smartphones, the latest technological mishap for the world’s largest smartphone maker.Consumers noticed in recent days that Samsung’s in-screen ultrasonic fingerprint scanner -- used to unlock the company’s latest Galaxy S10 and Note 10 models, as well as to authenticate payments on those devices -- can be fooled with unregistered fingerprints and a third-party silicone screen protector. After an initial report in the British tabloid The Sun, concern mounted about the potential scale of this security breach, which could make Galaxy users’ personal data and mobile wallets vulnerable to abuse.In a statement, Samsung advises that all users should remove any silicone screen protectors from their devices, delete and re-enroll their fingerprints and wait for the software update to arrive.When it was introduced as a major feature on the Galaxy S10, the ultrasonic fingerprint scanner technology was described by Samsung as “invisible yet vault-like security.” By partnering with Qualcomm Inc., Samsung provides the biometric security using sound waves to read the valleys and ridges of a finger’s surface.This is not the first time that Samsung’s flagship mobile devices have been caught up in a significant technological problem. In 2016, the Galaxy Note 7 turned out to be susceptible to catching fire spontaneously and even exploding in extreme cases, costing Samsung $5 billion in recall costs, consumer compensation and class-action lawsuits worldwide. More recently, in another screen problem, Galaxy Fold review models had a protective sheet that appeared like a screen protector and was mistakenly removed by testers, creating another headache for the company and forcing it to redesign the device.To contact the reporter on this story: Sohee Kim in Seoul at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Vlad Savov, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Blacklisting by the U.S. government, accusations of espionage and the arrest of its chief financial officer haven’t been enough to scare investors away from Huawei Technologies Co. Shares of China’s biggest telecoms equipment and smartphone maker aren’t publicly listed, making its equity largely unavailable to outsiders. Its bonds, however, do trade and have continued their upward trajectory over the past year, impervious to Donald Trump’s best efforts to make Huawei the biggest scalp in his trade war with China. Four different series of U.S. dollar bonds, with maturities in 2022 through 2027, have climbed as much as 5.6% since a low in December. That’s a lot for fixed-income markets. Even a massive drop in May — when the Trump administration moved to ban U.S. companies from selling vital components to Huawei — was shrugged off by debt investors within a month. Each of those securities is now within striking distance of record highs.The concern at that time, and which persists even today, is that shutting off access to American products such as semiconductors and software would hobble the world’s second-biggest smartphone maker. U.S. companies including Qualcomm Inc., Broadcom Inc. and Intel Corp. supply parts used in electronics products that are difficult to substitute, especially given that China lags behind in chip technology. Even a ban on Alphabet Inc.’s Google from supplying bits of its Android operating system to Huawei was considered a major blow, since Android is used on more than two-thirds of smartphones. The prohibition follows the December arrest of CFO Meng Wanzhou, who was detained in Canada at the request of the U.S. over allegations that include lying about the company’s dealings with Iran.Debt investors brushed off these worries, perhaps believing that Huawei’s status as a national hero coupled with its deep technological abilities ensure that the company would be able to pay its debts. Huawei was sitting on $39 billion of cash and short-term investments at the end of last year, with just $10.2 billion in total borrowings, according to its latest annual report.That makes Huawei’s $4.5 billion in outstanding bonds a trifle. And in the context of a slowing Chinese economy and concerns about the pileup of debt throughout the nation’s financial system, Huawei looks like one of the safest bets around.Such bullishness was rewarded this week when Huawei announced nine-month sales figures. Rather than get strangled by all those forces working against it, the Shenzhen-based company posted a 25% increase in third-quarter revenue to 209.5 billion yuan ($30 billion), according to my calculations. That’s 5% less than the prior quarter, but not the apocalyptic scenario many had expected. Importantly, it managed to maintain the 8.7% net profit margin it posted in the first half, which is actually higher than the same figure for full-year 2018. All of this goes to show that no matter what the U.S. and the economy throw at it, Huawei will be fine. Or at least its debt holders will.To contact the author of this story: Tim Culpan at firstname.lastname@example.orgTo contact the editor responsible for this story: Patrick McDowell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Keysight (KEYS) rides on robust adoption driven by high demand for 5G design and test solutions along with strong pipeline for new business bookings.
(Bloomberg) -- Google’s latest smartphone demonstrates how artificial intelligence and software can enhance a camera’s capabilities, one of the most important selling points of any mobile device.The Pixel 4, the latest entrant in a phone line defined by its cameras, touts an upgraded ability to zoom in when shooting photos as its biggest upgrade. But the Alphabet Inc. company isn’t going about it the way that Samsung Electronics Co., Huawei Technologies Co. or Apple Inc. have done -- instead of adding multiple cameras with complicated optics, Google has opted for a single extra lens that relies on AI and processing to fill in the quality gap.In place of the usual spec barrage, Google prefers to talk about a “software-defined camera,” Isaac Reynolds, product manager on the company’s Pixel team, said in an interview. The device should be judged by the end-product, he argued, which Google claims is a 3x digital zoom that matches the quality of optical zoom from multi-lens arrays. The Pixel 4 has two lenses with a magnification factor between them that’s less than 2x, and the tech that extends that useful range is almost entirely software.The success of the Pixel’s camera is instrumental to Google’s broader ambitions: it drives Google Photos adoption, provides more fodder for Google’s image libraries, and helps create better experiences with augmented-reality applications -- such as this year’s new on-screen walking directions in Google Maps.Google’s IPhone Retort: More Cameras and AI in New Pixel PhonesSuper Res Zoom, a feature Google launched last year, uses the slight hand movements of a photographer when capturing a shot -- usually a hurdle to creating crisp images -- as an advantage in crafting an image that’s sharper than it otherwise would be. The camera shoots a burst of quick takes, each one from a slightly different position because of the camera shake, then combines them into a single image. It’s an algorithmic trick that lets Google collect more information from imaging hardware, and potentially also a moat against any rivals trying to copy Google -- because others can’t just buy the same imaging sensors and replicate the results.To augment its reliance on AI and machine-learning tasks, Google has designed and added its own Pixel Neural Core chip for the Pixel 4 lineup. It accelerates the machine-learning speed of the device and, again, is intended to differentiate Google’s offering from other Android smartphones on the market with a Qualcomm Snapdragon processor at its core.The other major tool in Google’s AI kit is called RAISR, or Rapid and Accurate Image Super Resolution, which trains AI on vast libraries of images so it can more effectively enhance the resolution of images. The system is taught to recognize particular patterns, edges and visual features, so that when it detects them in lower-quality shots, it knows how to improve them. That’s key to creating zoom with “a lot smoother quality degradation,” as Reynolds put it. With more than a billion Google Photos users, the U.S. company has a massive supply of images to train its software on.Among the other features that Google offers with the Pixel 4 is the ability to identify the faces of people that a user photographs most often and ensure that they’re prioritized when capturing new snapshots -- making sure the camera focuses on them and that their eyes aren’t closed, for instance. That use of software technology has defined Google’s devices to date and is also evident in the way Facebook Inc., Amazon.com Inc. and Apple aim to employ their own AI systems.To contact the reporter on this story: Vlad Savov in Tokyo at firstname.lastname@example.orgTo contact the editors responsible for this story: Edwin Chan at email@example.com, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
This is what fundamentals and technicals say about buying Qualcomm stock now amid a truce with Apple, 5G leadership, and a Tencent pact.
SAN DIEGO , Oct. 15, 2019 /PRNewswire/ -- Qualcomm Incorporated (NASDAQ: QCOM) today announced a quarterly cash dividend of $0.62 per common share, payable on December 19, 2019 , to stockholders of record ...
Intel (NASDAQ:INTC) has continued to struggle as competitors it once dominated continue to build competitive leads on the venerable chip company. It seemed to lose its way as it struggled for direction following the decline in the PC. Still, like these peers in previous years, a coming shift in technology may return Intel, and by extension, INTC stock, back to prominence.Source: JHVEPhoto / Shutterstock.com Intel's latest attempt to make a comeback revolves around an effort to get back into graphics processing units (GPUs). The company had conceded this segment of the market to Nvidia (NASDAQ:NVDA) after dabbling in the graphics card market 20 years ago. However, artificial intelligence (AI), virtual reality, the Internet of Things (IoT), and other tech innovations have significantly increased the importance of GPUs.Consequently, Intel has also announced that it will introduce its Xe graphics card in 2020. The tech firm has also begun to phase out its partnership with Advanced Micro Devices (NASDAQ:AMD) on the Kaby Lake-G mobile CPUs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intel Stock Lacks a CatalystWhether this will become a catalyst for INTC remains unclear. Other PC-era stocks, such as Nvidia, AMD, and Microsoft (NASDAQ:MSFT) successfully redefined themselves. However, INTC remains out of favor with investors. * 7 Tech Stocks You Should Avoid Now While its closest peers have attracted premium price-earnings ratios in recent years, INTC stock trades at a forward PE ratio of 11.7. This happened for understandable reasons. The company allowed itself to fall behind AMD in the CPU market. Moreover, scandals in the C-suite, as well as mixed successes in moving beyond the PC market, have placed further pressure on Intel stock.It has now traded in a range for almost two years. INTC stock sells close to the high end of its range now. Still, with earnings projected to fall by 4.1% this year and grow by only 1.1% in fiscal 2020, Intel seems to lack a catalyst. From this point of view, INTC appears fairly valued. Investors Should Consider the FutureHowever, the price also implies that the company has rested on its laurels. The company's initiatives seem to indicate otherwise. Some of my colleagues also make a great point about the long-term case for INTC.Ian Bezek says, "it is doing better than you probably realize." Todd Shriber calls the profit potential "considerable" if Intel can boost its AI presence. If the company can capitalize on this potential, they think Intel stock will move much higher, and I agree.The move into GPUs may or may not succeed. However, the company still has an ace in the hole -- 5G. I stated in my previous article that "network cloudification could again bring servers powered by Intel chips to the forefront."Smartphone manufacturers have begun to make devices with Qualcomm's (NASDAQ:QCOM) 5G-compatible chips. This means the switch to 5G is now in its early stages. Once consumers and businesses begin to see the benefits of 5G first-hand, the benefits could finally accrue to INTC itself. Intel's self-driving vehicle unit Mobileye stands as one of these likely beneficiaries.Analysts have begun to price this possibility into earnings forecasts. Although earnings growth appears stagnant through next year, Wall Street projects average annual profit increases of 7.33% per year for the next five years. If Intel can return to double-digit profit growth, INTC stock could see the same type of multiple expansion that has benefitted its PC-era peers in recent years. That promise alone could make a position in INTC worthwhile. The Bottom Line on INTCDespite a move into GPUs, the return of Intel to prominence likely hinges on 5G. Given the paltry earnings growth forecasted for the company in the near term, Intel stock appears fairly valued at 11.7-times forward earnings.However, analysts forecast longer-term growth to move higher in future years. The adoption of 5G by itself looks poised to propel Intel higher. 5G will also drive the AI, VR, and other applications that will further benefit Intel.The 5G-driven technological shift that analysts have talked about for years has now begun. This could benefit INTC, so investors should consider buying sooner rather than later.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post The Future Success of INTC Hinges on Converting Its Innovations appeared first on InvestorPlace.
Throughout 2019, the Technology sector has been flying high as the top performing sector. Heading into Q4, Technology companies and investors alike have begun to show concerns over the macro environment, and that’s arguably starting to show up in the sector’s performance. Plus, they’re paying close attention to the US-China trade front where the market tends to swing on emotions day to day, with one headline bringing us up and another taking us down.
Intel (NASDAQ:INTC) stock has had a tough time in 2019. While shares are up for the year, the stock has under performed its semiconductor peers. With the company losing CPU market share to Advanced Micro Devices (NASDAQ:AMD), it's no wonder investors have left INTC in the dust. In addition, the macroeconomic environment has not been friendly to INTC stock. Or to the chip space in general.Source: JHVEPhoto / Shutterstock.com While resumed trade talks have already resulted in "progress", investors remain skittish whether the U.S.-China trade fracas will lead to further headwinds for the chip space.But looking beyond these variables, Intel remains a solid stock to own. Selling at a low valuation, it offers value in a space dominated by speculative growth names. It pays a solid dividend, and has the cash flow to support it. While you may not see big gains from Intel, it may be a great blue chip opportunity. Let's take a closer look at Intel, and see why the stock may be a buy at today's price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Intel vs. AMDI believe the CPU wars are the most important factor when assessing Intel stock. While the trade war is a big risk, long-term AMD's purported recriminating of CPU market share threatens INTC's economic moat. Intel's dominant market share has given it pricing power and other advantages to ensure the stock remains a cash cow. But with AMD eating more of Intel's lunch, it seems that this gravy train could soon be over. * 7 Semiconductor Stocks to Buy Now But what is the truth behind the hype?It's no joke that AMD's Ryzen processors have been a game-changer. The success of this chip line has helped AMD seize more of Intel's CPU market share since 2017. AMD now has a staggering 30% market share of the CPU market. If this trend continues, AMD could reach market share it hasn't seen since the mid-2000s, when it had over 40% CPU market share.However, could this be but a short-term blip? Intel's market share losses are the result of their chip shortage. Their inability to adapt to 14-nanometre sized processor lead to supply issues. End-users simply switched from Intel to AMD.Perhaps AMD's market-share grab will taper off in the next few quarters. InvestorPlace's Ian Bezek believes so. In his Oct. 9 article, he pointed out how while AMD's market share has grown materially, it cooled off in the last quarter. However, as an aside, Bezek pointed out how Microsoft (NASDAQ:MSFT) partnering with Qualcomm (NASDAQ:QCOM) for chips in their Surface tablets highlights market share risk. Mobile chips have not been successful in the past when used in tablets. But with improvements in technology, mobile chip makers like Qualcomm now offer a compelling alternative to Intel's x86 CPUs. Despite Headwinds, INTC Stock Is UndervaluedIntel stock trades at a low valuation relative to most of its peers. INTC trades at a forward price-to-earnings (P/E) ratio of 11.6. The stock's enterprise-value-to-EBITDA (EV/EBITDA) ratio is 7.7. Here are the respective valuations of INTC's key competitors:AMD: Forward P/E of 27.8, EV/EBITDA of 64.7Broadcom (NASDAQ:AVGO): Forward P/E of 12, EV/EBITDA of 14Qualcomm: Forward P/E of 18.3, EV/EBITDA of 8.4Nvidia (NASDAQ:NVDA): Forward P/E of 26, EV/EBITDA of 40Texas Instruments (NASDAQ:TXN): Forward P/E of 5.9, EV/EBITDA of 3.1One thing to keep in mind is Intel's lack of long-term revenue growth. Analyst consensus estimates revenue will only grow from $69.4 billion in 2019 to $70.9 billion in 2020. Clearly, INTC stock is no growth play. But Intel stock more than makes up for in terms of return of capital to shareholders.INTC stock currently pays a 2.42% yield. While not the highest yielding blue-chip, it is otherwise a solid dividend. With a payout ratio of just 35.92%, there's plenty of room to grow this in coming years. The average 5-year growth rate for the dividend has been 5.92%. * 10 Tech Stocks to Buy Now for 2025 Along with dividends, Intel has bought back a lot of stock. For the first half of 2019, they repurchased $5.6 billion worth of shares alone. These buybacks are accretive to Intel shareholders, as they improve earnings-per-share over the long-term. Bottom Line: Intel Is a Solid Long-Term InvestmentThere's not much of a "play" with INTC stock. The company's main appeal is their cash-generating status and relatively low valuation. Key risks like competition and China may already be priced into shares. But if both of these issues accelerate, it does threaten the bull case for Intel stock.So what's the call? Are you looking for a solid dividend payer? Consider Intel stock. Are you looking for a contrarian chip play? Perhaps look elsewhere. Whether or not INTC maintains its moat, it is unlikely the company will see monumental revenue growth. Other chip names may offer this proposition.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post Why Intel Stock Will Weather the Trade War Storm appeared first on InvestorPlace.
Shares of global chip giant Qualcomm (NASDAQ:QCOM) have been climbing ever since the company "won" a multi-year litigation struggle with smartphone giant Apple (NASDAQ:AAPL). As part of the companies' settlement, Apple agreed to pay Qualcomm a great deal of royalty fees, and Apple agreed to resume buying Qualcomm's chips for the next several years.Source: Akshdeep Kaur Raked / Shutterstock.com Ever since that landmark "win" for Qualcomm, QCOM stock has been a big winner. Qualcomm stock is up 35% in 2019, despite weak demand for semiconductors.Now QCOM stock has another catalyst on the horizon: the U.S.-China trade deal.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe trade war is one of the reasons for the weakness. While the direct impact of the trade war on semiconductor demand has not been that intense, the indirect effects of the conflict have had major ramifications on the sector. * 7 A-Rated Stocks to Buy for the Rest of 2019 Business leaders have been concerned about the rising geopolitical risks and lack of certainty created by the trade conflict. Amid this uncertainty, business confidence is falling, and businesses' capital spending has declined. The semiconductor industry is greatly affected by corporate capital spending, so when such spending drops, the whole semi sector struggles.But trade tensions are easing. The U.S. and China say they have made a deal in principle to resolve some of the issues between them. That will inject certainty into these uncertain times. Business confidence will rebound. Capital spending will rise. Global demand for chips will climb, and there will be a rising tide that will lift all boats, including QCOM stock.As a result, investors should buy Qualcomm stock as trade tensions ease. The U.S.-China Trade DealThe trade deal could have huge implications. Above all else, it will inject certainty into these uncertain times. That injection of certainty will lift business confidence, which has been deteriorating for the past 20 months. As business confidence zooms higher, capital spending - which has similarly been slowing - will also bounce back. A large amount of that spending will be used to buy semiconductor chips. So semiconductor revenue should get a lift from the trade deal.Qualcomm is one of the biggest players in the global semi industry. If that industry surges higher in 2020 because of easing trade tensions, Qualcomm's growth will naturally accelerate, too, lifting QCOM stock. Qualcomm Stock Has Multiple CatalystsThe good thing about QCOM stock is that, while easing trade tensions could be a big catalyst, the stock doesn't need easing trade tensions to head higher.That's because QCOM has multiple other catalysts which should keep QCOM stock on a winning path for the foreseeable future.First and foremost, the 5G boom coming in 2020 and 2021 should increase demand for Qualcomm's 5G chips. Second, a Qualcomm-powered 5G iPhone will also be a strong positive catalyst for QCOM stock.Between those two catalysts, Qualcomm has more than enough firepower to generate rapid revenue and profit growth over the next two to three years. That strong revenue and profit growth - coupled with the undemanding 18-times forward price-earnings multiple of Qualcomm stock - should lead to strong gains by Qualcomm stock over the next few years. The Bottom Line on QCOM StockQCOM stock looks good now. Easing trade tensions, the forthcoming 5G boom, and higher Apple revenue are in its pipeline. Those three major developments should help boost its revenue and profit growth over the next two to three years,. As a result, QCOM stock should keep winning for the foreseeable future.As of this writing, Luke Lango was long QCOM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Buy Qualcomm Stock as Trade Tensions Ease appeared first on InvestorPlace.
[Editor's note: This story was previously published in June 2019. It has since been updated and republished.]Augmented reality is quietly growing quickly. According to a report released last year, AR was worth $350 million in 2018, and its value is expected to surge at a compound annual growth rate of around 150% from 2019-2024. Among the areas in which AR is expected to be used in the near-future are social media, mobile devices, virtual conference calls, and automotive devices. * 7 A-Rated Stocks to Buy for the Rest of 2019 Here's a run-down of nine names investors will want to keep an eye on as the harbingers of the (fruitful and rapidly approaching) AR era.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Vuzix Corp (VUZI)Source: Shutterstock Although the project was actively pursued by Alphabet (NASDAQ:GOOGL) afterward, the first go-around for Google Glass was pretty much a flop. The idea of projecting information onto glass a user/wearer is looking through, however, never really went away. It just has far more applications as an industrial or commercial tool than it does for a consumer.Enter Vuzix Corp (NASDAQ:VUZI). You may know it as the company that developed an apparatus that helps blind people get around better. But products like its M300 and Blade smart glasses were "built for enterprise." The company has quietly made a compelling case for using them as a means of getting more done in the workplace at a reasonable price… for a corporation. QUALCOMM (QCOM)Source: Michael Vi / Shutterstock.com Yes, it's best known as a telecom and semiconductor play and not often lumped in with a list of AR stocks. But, QUALCOMM, Inc. (NASDAQ:QCOM) is very well-positioned to capitalize on the mainstreaming of augmented reality.It's gone relatively unrealized (or at least unappreciated), but AR requires the delivery of massive amounts of data, and it requires plenty of computing power to deliver that information in real-time. AR glasses and goggles also burn through batteries relatively quickly. * 7 A-Rated Stocks to Buy for the Rest of 2019 QUALCOMM as addressing all three needs, announcing in 2018 that it would be developing a chipset specifically for AR and VR applications. This turn-key solution will make it easier for other developers to bring new glasses to the marketplace. Lumentum (LITE)If the name Lumentum (NASDAQ:LITE) rings a bell, there's a reason. It's a stock that was thrust into the spotlight in the latter part of 2017 when Apple CEO Tim Cook began talking up augmented reality's prospects.Though he didn't explicitly say at the time how (or even if) Apple would aim at the AR market, nor did he mention Lumentum by name, the potentially-bullish connection makes a lot of sense. Lumentum makes the kind of 3D sensor lasers that can turn a smartphone into something of a radar -- an important piece of the augmented reality movement. Apple (AAPL)Source: View Apart / Shutterstock.com Speaking of Apple(NASDAQ:AAPL), it, too, is a name to keep in mind if you believe augmented reality is a serious opportunity.Yes, its smartphones are powerful computers that seem to become more powerful with each iteration. That's not why the company is such an interesting AR prospect though. Rather, Apple is reportedly developing its own augmented reality headset, a la Google Glass. * 10 Companies Using AI to Grow The device likely wouldn't launch until 2021, according to Loup Ventures' Gene Munster. But the market rewards potential about as much as it does real results, so it's something that could begin to positively impact the stocks soon and continue as the presumed launch date nears. Immersion Corporation (IMMR)Source: Immersion.com Immersion Corporation (NASDAQ:IMMR) has earned a spot on a list of noteworthy AR stocks to watch with its TouchSense(r) Force technology that makes displays screens a tactile, haptic experience. It's been particularly impressive in the VR gaming world, but the possibilities are just now starting to be realized in full. Axon Enterprise (AAXN)Source: Shutterstock Axon Enterprise Inc (NASDAQ:AAXN) isn't an augmented reality play… yet. But, it appears it soon will be. In 2018, the maker of TASERs and body-worn cameras suggested AR and VR would be its next frontier.It's not entirely clear what this might mean. But, given the nature of its target markets -- law enforcement and military personnel -- it's reasonably safe to assume the company is mulling ways to better protect and equip people that wear a uniform -- and a gun -- to work. * 7 A-Rated Stocks to Buy for the Rest of 2019 A marketable product is still years away, but like any other company, the market is likely to reward progress en route to results. Microsoft Corporation (MSFT)Source: gguy / Shutterstock.com Don't get the wrong idea. Productivity software, the cloud and operating systems are still the company's break and butter, and will be for a long, long time. Microsoft Corporation (NASDAQ:MSFT) is wading into augmented reality waters, though, quickly enough that it just might make a modest impact on the stock's value.How so? The HoloLens. It's arguably the most market-ready, and marketable, AR/VR headset available today, even if interest has been tepid thus far.In May 2018, the software giant demonstrated two practical apps that make good use of the hardware: Layou, and Remote Assist. Layout allows for structural designing beyond mere blueprints, while Remote Assist shares what you see with people who aren't on-site.It may be just the 'aha' app that convinces companies they can't live without the HoloLens. Microvision (MVIS)Source: Microvision For the record, Microvision, Inc. (NASDAQ:MVIS) and Microsoft are two different companies. The aforementioned Microsoft is the maker of the HoloLens, which may be on the verge of becoming a must-have. Microvision's role in the augmented reality movement, however, it a little bit different. It's the maker of laser (and the supporting technologies) that can project images and data into glass.The most practical and tangible use of its PicoP(r) technology is the projection of the information normally found on a car's dashboard up to the windshield, allowing a driver to keep his or her eyes on the road. It's the same basic concept being used by Google Glass, Microsoft's HoloLens and the like though -- melding the benefits of a transparent material with valuable information overlaid. NVIDIA (NVDA)Source: Hairem / Shutterstock.com Last but not least, it may be a tad obvious, but add NVIDIA Corporation (NASDAQ:NVDA) to your list of AR stocks to keep tabs on.NVIDIA has already proven itself capable of handling the big visual data loads associated with virtual reality; making augmented reality even better is proving relatively easily by comparison.One area it's making that happen is on the automotive front. Like Microvision, NVIDIA is working on improving the driving experience by melding AR with artificial intelligence. That's only a taste of what's to come though. While other companies are still perfecting their first-generation augmented reality hardware, NVIDIA is already thinking about the next generation of AR technologies. Two improvements on NVIDIA's radar are varifocal displays, which improve clarity of an object for a user, and the integration of tactile/haptic information with visually-augmented reality.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post 9 Augmented Reality Stocks to Buy appeared first on InvestorPlace.