Broadcom Corporation (BRCM), QUALCOMM, Inc. (QCOM): The Best Industry to Invest In

I believe this will not be a reason of concern because, first, the complete transition from 3G to 4G/LTE will take time – at least a couple of years even in the developed markets – and second, the need to backward-integrate will allow Qualcomm to offer 3G compatibility even if it has started providing 4G services. Moreover, many of the developing countries are shifting to 3G now and/or are in the initial stage of their transition from 2G to 3G providing a huge market for 3G.

As Qualcomm leads the LTE market, Intel is noticeably the same giant in the PC industry, as it owns 80% of the desktop-chip market and an 87% share for laptop chips. The concern for Intel is that it is heavily skewed on a fast-declining PC market as its major source of revenue. Moreover, it only owns 1% of the growing mobile and tablet market which puts it into a back seat compared to its competitors.

Intel has the required resources and it is investing profoundly to set a footing in the mobile and tablet market with its Atom processors. The company has not yet gained any major success with its Atom processor, as none of the major mobile and tablet-producing companies are using it in their devices. Presently, the company’s success depends majorly on its new 22-nanometer mobile chip, which is yet to be launched.

Final words

QUALCOMM, Inc. (NASDAQ:QCOM) is without doubt the best when it comes to LTE mobile solutions and is clearly far ahead of the competition, making itself a strong long-term prospect for investors. Broadcom Corporation (NASDAQ:BRCM) is following up closely and has gained great momentum over the last few years with its revenue on the rise. With a diversified market, a concentration in the emerging markets, and a quest for innovation, it will help the company gain further success.

As for Intel, if investors are watching out for its progress in the mobile and tablet segment, they really have nothing to be happy about, even though its tremendous lead in the computer industry acts as a cushion until the company’s R&D in other segments starts delivering. Moreover, Intel’s brand name and previous success of being a market leader in whatever it does, along with a current dividend yield of 4.3%, should keep investors patiently waiting until its mobile and tablet chips start gaining traction.

The article The Best Industry to Invest In originally appeared on Fool.com and is written by tarun bachhawat.

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