Kagan: Qualcomm remains strong with 5G and patent portfolio

Over the last several decades, Qualcomm has been and remains one of the most powerful and important companies in the global wireless space. As a leader in 5G, Qualcomm sees strong growth ahead for many years to comes as the world upgrades its wireless networks, smartphones, tablets and more. This along with their massive wireless Patent portfolio means this company is a strong player going forward.

Cristiano Amon is the next CEO of Qualcomm starting later this year and it looks like he has developed solid control over the direction and state of the company. Something he has learned from present CEO Steve Mollenkopf over the years.

Cristiano Amon next CEO of Qualcomm

True, no company is bulletproof. Every company is susceptible to industry changes and major, global economic impacts, like what Covid-19 has done.

That being said, there are only a few, global companies who can and will continue massive growth for many years because of major industry upgrades like 5G wireless.

Since Qualcomm is a leader in the 5G space, I see them remaining one of the strong players moving forward.

Qualcomm is leader in 5G wireless industry

The Qualcomm patent portfolio is another very important piece of the growth puzzle. Qualcomm has a massive number of important wireless patents. This is a real competitive advantage in the wireless marketplace.

Other companies involved in the massive, global, 5G wireless transformation also see strong growth going forward. Companies like Huawei, Ericsson, Nokia, HTC and several others are also important players in the 5G race.

Qualcomm, Huawei, Ericsson, Nokia, HTC and others in 5G race

Qualcomm has seen strong growth 2020 and that ride is not over. I believe it will continue moving forward for several years at a minimum.

In fact, as 5G continues to accelerate both for networks and handset makers, this translates into an extended and strong period of growth for the company. Something that will get stronger during the next few years as the pace accelerates.

Every wireless network around the world is upgrading to 5G. Some are doing so to gain a competitive advantage. Others are doing so to keep up with the competition.

Whatever the reason, 5G is a solid trend and will continue for several years.

Qualcomm has clear runway with FTC case and Apple suit settled

Winning the FTC case and settling with Apple have freed Qualcomm to focus on growth as the 5G marketplace continues to heat up.

Qualcomm has always been the innovator in the wireless industry both on the network side and the other side with smartphones, tablets and more.

They continue to be the innovator in the 5G marketplace. Consider their vast array of Patents in the industry.

Challenges the wireless industry faces

There are always challenges. Consider how Apple is moving toward in-house semiconductors and chips.

There is also a chip shortage in the industry. This was caused by COVID-19 when companies started to pull back to prepare for a slowdown. Then when the “V” shaped recovery kicked in, the demand for chips exploded. In fact, the demand never really slowed as feared.

That means the chip shortage could be with us for a few more quarters. However, this shortage is only temporary. A short-term issue. The supply chain should get back to normal by the end of the year.

This is impacting the automotive sector, but also every other chip-based sector as well. The good news this impact will only be short-term.

As for acquisitions, as time goes by expect more of them. This is a way for Qualcomm to extend their reach further and faster.

Qualcomm expands 5G reach further, faster

They have also recently taken a more open approach. They hold many briefings, in-person before COVID-19 and by video conference today. This is serving them well. I expect this to continue going forward.

This transparency should help them with growth. They help the outside world have a deeper understanding of their business both today and what’s coming next.

There is so much more to say, but bottom line, considering everything, Qualcomm remains one of the most important and attractive companies in the 5G wireless growth space, both here in the USA and in fact, globally. And they should remain that way for years to come based on what we see today.

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