Stock Pitch 7: Qualcomm Inc.
At King’s Capital, our equities team members, Stephen and Takaya are committed to sharing insights and deepening our understanding of how recent events and predicted developments can impact equity prices. In particular, we’re closely monitoring the potential effects of Trump’s re-election, along with his plans to deregulate industries and lower corporation tax, which are likely to cause fluctuations in the technology market.
We are pleased to share a stock pitch on Qualcomm Inc., a global semiconductor and 5G technology leader. Qualcomm’s products power a wide range of devices, from smartphones to connected cars, positioning the company at the forefront of the technology sector.
Our recommendation is a long position. Qualcomm stands to benefit significantly from the ongoing demand for AI and innovative technologies. With the global semiconductor industry projected to grow at a CAGR of 8% from 2023 to 2033, Qualcomm’s leadership in wireless chipsets and AI computing capabilities ensures its continued relevance in an increasingly connected world.
We are particularly optimistic when it comes to Qualcomm’s $15 billion stock buyback programme, which is expected to enhance shareholder value. Additionally, the company’s acquisition of Intel’s mobile business strengthens its competitive position in rapidly growing markets.
Despite occasional biases in media coverage, Qualcomm’s stock has consistently outperformed expectations over the past five years, solidifying our confidence in its long-term potential as a compelling investment. While risks such as regulatory changes, increased competition in the semiconductor industry, and the potential for supply chain disruptions remain, Qualcomm’s strong innovation pipeline and dominant market position help to mitigate these challenges. The company’s leadership in 5G technology, ongoing advancements in AI-driven chipsets, and diversification into automotive and IoT sectors further aid its growth prospects. These factors make Qualcomm a highly attractive investment opportunity for those focused on future returns, even in the face of a dynamic and competitive technological landscape.
For a deeper dive into why we chose Qualcomm Inc, we invite you to review the full pitch deck. Stay tuned for more stock insights and pitches from King’s Capital as we continue to explore high-potential opportunities using market analysis and forecasts!
Disclaimer: This is not financial advice but our personal opinion. King’s Capital will not be held liable for any gains or losses incurred by following this information
