Why Qualcomm's Patent Deal With Huawei Sent Stock Soaring: Jeff Kagan

Jeff Kagan  |

Image: CEO Steve Mollenkopf. Source: Qualcomm

Qualcomm is on a roll. The company just resolved its dispute with Huawei and created a new patent deal. Investors loved how this will increase Qualcomm's revenues by nearly $2 billion in the fourth quarter sending the stock soaring. As 5G continues to roll out not only across the United States, but in fact the entire world, there is an incredible growth opportunity ahead. Let’s explore.

Qualcomm has built the most extensive licensing program in the wireless industry. This new patent license agreement with Huawei makes that position stronger than ever. This is good news for both Qualcomm and Huawei.

Qualcomm shows growth in 5G licensing, Wi-Fi 6, Quick Charge 5

Qualcomm’s new Quick Charge 5, which enables users to quickly charge their devices in minutes, not hours, is another big step the company has taken recently.

In fact, Qualcomm is solidly in the middle of the escalating wireless transformation of society all around the world. This is the enormous growth opportunity which we have in front of us and the company has in front of it.

The next decade will be full of growth not only in 5G and Wi-Fi 6 with network gear and smartphone technology across the globe, but it will also include countless other industries and companies transforming their business models to include this new wireless technology.

5G growth in TeleHealth, Connected Cars, 5GAA and more

Think of industries like TeleHealth and TeleMedicine, automated driving and connected cars and so much more. Consider the 5GAA. This Automobile Association is a group that has an increasing number of major automotive brands and wireless players working together to use 5G technology in new ways.

And we are still in the very early years of this next revolution that will transform our world, our jobs, the companies we use whether we are business customers or individual consumers, investors and more.

In fact, even in the middle of the coronavirus pandemic, the wireless industry continues its rapid rollout of 5G and Wi-Fi 6 in networks, handsets and tablets, and that means Qualcomm plays and important role going forward.

5G growth with AT&T, Verizon, T-Mobile, Apple, Samsung, Google

Carriers like AT&T Mobility, Verizon Wireless and T-Mobile here in the United States have not slowed down their 5G buildout. In fact, they are continuing this 5G expansion moving forward.

This is the same for every wireless network worldwide. That is a huge, long-term growth opportunity for all these companies.

Smartphone and tablet makers like Apple with its iPhone and iPad, Samsung with its Galaxy and all the others are continuing to invest in and roll out their 5G products.

Plus, other industries like TeleHealth, Automated Driving, retail, sales and so many others are also moving forward rapidly.

Expect strong growth in 5G, Wi-Fi 6 and more to continue

This means Qualcomm will continue to show strong growth in many areas of the changing and growing wireless industry as it expands to 5G, Wi-Fi 6 and beyond.

Every one of these industries, segments and players needs Qualcomm equipment and services in order to make their own 5G plans come to fruition. There are several key global players including Huawei, Ericsson and Nokia.

Qualcomm is the American racehorse in this 5G contest. And it continues to show strong growth. These are just a few reasons the company is in a very strong position moving forward. And these are the reasons it should remain that way over the next decade or even longer.


Jeff Kagan is an Equities News columnist. Kagan is an Industry Analyst, Thought Leader, Key Opinion Leader, KOL, and Influencer focused on Wireless, Telecom, Pay TV, Cloud, AI, IoT, Tele Health, Healthcare, Automotive and Self-Driving cars. Email him at jeff@jeffKAGAN.com. His web site is www.jeffKAGAN.com. Follow him on Twitter @jeffkagan and LinkedIn www.linkedin.com/in/jeff-kagan/

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Equities Columnist: Jeff Kagan

Source: Equities News

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer. The author of this article, or a firm that employs the author, is a holder of the following securities mentioned in this article : None

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