Qualcomm: Auto Business Offers Material Upside

Summary:

• Qualcomm’s automotive business is rapidly growing, leveraging the company’s strengths in low-power chips and in-cockpit software to capitalize on the ADAS/AV market.
• Qualcomm offers open and modular solutions that allow OEMs to pick and choose the capabilities they require.
• Qualcomm’s recent growth and design wins demonstrate the strength of its product portfolio.
• Qualcomm’s share price is likely to be driven by its handset and IoT businesses in the short-term, but its auto business should become an important value driver in coming years.

Qualcomm’s (NASDAQ:QCOM) automotive business has gone from strength to strength in recent years and is now an important value driver for the company. This opportunity is just beginning though, as the introduction of more advanced ADAS/AV solutions will significantly

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MBLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.