Kagan: Why Qualcomm keeps hitting it out of the park
Qualcomm is on a roll. They just keep hitting the ball out of the park, quarter after quarter, with strong and expanding growth. A few short years ago they were bogged down with Apple and U.S. government battles, but now that things have settled down, they are looking stronger than ever going forward. So, what about long-term? Let’s take a closer look at what we can expect.
First, Qualcomm is a leader in the very attractive wireless industry which keeps expanding, decade after decade.
Second, in recent years they have expanded into many new areas that are all connected like 5G, 6G, IoT, AI, automotive, autonomous driving, medicine, healthcare and so much more.
Pull camera back for long-term, historical perspective on Qualcomm
Every investor, customer and worker knows how important it is to understand what is happening both short and long-term, both for individual companies and the industry as a whole.
So, let’s pull the camera back and get a longer-term, historical perspective on both Qualcomm, and the industry. Where we came from, where we are today and where we are heading.
Cristiano Amon, Qualcomm CEO says the plan they have to grow the market to $700 billion is on track and he is very excited about the future for the company. So far, so good.
Qualcomm CEO Cristiano Amon is very excited about future growth
Qualcomm has changed over time. In the early years it made cellular handsets. At that time there were one of many competitors like Nokia, Blackberry, Motorola and so on.
Then they changed directions. They started making the technology that powered other handsets. So, instead of competing with every handset maker, they did business with all of them and the wireless networks, world-wide.
This proved to be a great move for Qualcomm growth over time.
Now, over the last year or so, they have changed and expanded their marketplace again.
First, they started out in the wireless business, and as it changed from 4G to 5G and then to 6G there was plenty of growth potential.
Qualcomm expanded to AI, IoT and more for growth
New technologies like IoT and AI are changing our world. Qualcomm is becoming one of the key leaders in this new space as well, especially in how they work in the wireless world.
This is another enormous potential growth opportunity.
They are also empowering other new industries like autonomous driving, self-driving cars, telemedicine and so much more.
Qualcomm expanded to autonomous driving, telemedicine, healthcare
· Yesterday, the phone was attached to the kitchen wall with a long cord. Today, everything is wireless.
· Yesterday, everything was analog. Today, it’s all digital.
· Yesterday, we had analog cable TV. Today, it’s all digital and delivered over the Internet and wirelessly with streaming services and so much more.
These changes and many others have impacted every product and service we use. And that’s just where we are today. This transformation is continuing in a growing number of industries with AI, IoT, the cloud, VR, AR and so much more.
That means these changes will continue to impact every market, every company and every one of us, at home, in the office and more.
Growth and change are what we are experiencing every day. Some companies are the drivers of this level of change. Qualcomm is one of them.
Qualcomm 2Q22 financial earnings look strong
And just as they have expanded in recent decades, they will continue to do so going forward. They are empowering the kind of change and expansion that is so exciting about our world today.
Qualcomm released their second quarter financial numbers, and they show strong growth in every area they are now working in.
As we can see, the company can no longer be addressed only as a leader in wireless. Going forward, they say Qualcomm is a leading connected processing company for intelligent edge services.
They serve several new markets in the cloud and connected economy that is developing in the United States and in fact, world-wide.
Qualcomm no longer just a wireless player; 5G, AI, IoT
As long as they continue on this track, there is an enormous growth opportunity for years to come.
That means as long as they have leadership that understands the changing and expanding marketplace, there does not seem to be any limit to the potential growth opportunity Qualcomm has laid out in front of them.
So, for the question I originally asked, about long-term potential… It certainly looks like Qualcomm both remains strong today and has a long-term growth runway ahead.