Morningstar Rating

Stock Research and Analysis

by Brian Colello, CPA

Bulls Say

Qualcomm collects royalty income on the vast majority of 3G and 4G handsets sold, as it holds virtually all essential patents used in these networks.
Qualcomm’s royalty revenue should grow along with the overall smartphone market, even as much of the market growth will come from entry-level phones.
Qualcomm is the clear market leader in wireless chips, with a leading market share position in 4G LTE chipsets and relationships with every prominent smartphone maker. Read more 

Bears Say

Qualcomm’s chip business faces a host of challenges, from share loss at Samsung to price competition in entry-level smartphones, to other premium customers like LG and HTC facing an uphill battle in the market.
Samsung, for its upcoming Galaxy S6 smartphone launch, bypassed Qualcomm’s latest Snapdragon 810 processor.
Qualcomm's licensing revenue still faces some collection issues in China as the company does not have licensing deals in place with all Chinese phone-makers for 3G and 4G devices. Read more 


We continue to view Qualcomm as good stewards of shareholder capital, but near-term struggles in the firm’s chip business are troubling. Steve Mollenkopf took over the CEO role in March after more than 20 years with the company, proving himself as a   Read more 


Qualcomm develops and licenses wireless technology and manufactures semiconductors for mobile phones. The company's key patents revolve around CDMA and OFDMA technologies,  Read more 

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