Forget Apple Inc. (AAPL) and Google Inc (GOOG), Buy this Fast-Growing Tech Stock: QUALCOMM, Inc. (QCOM)

On a qualitative basis, Qualcomm seems to have less overall “noise” than Apple or Google. In particular, the stock is less sensitive to news flow from the popular press, which often has an unwanted impact on more popular tech stocks.

Foolish Bottom Line

For Qualcomm, it doesn’t matter who the winner is in the smartphone battles. All of the major manufacturers utilize the company’s Snapdragon processors in their leading mobile devices. The Consumer Electronics Show in January affirmed Qualcomm as the undisputed leader for the next generation of mobile devices, such as Samsung Galaxy S4 and iPhone 5S.

Qualcomm also commands a net profit margin of 28%, indicating it has strong control over the pricing of its mobile chips. For reference, Apple Inc. (NASDAQ:AAPL) and Google have net profit margins of 25% and 21.5%, respectively.

The company reports second quarter fiscal 2013 earnings on April 24 after the market close. I recommend that readers accumulate shares of QUALCOMM, Inc. (NASDAQ:QCOM) on any market weakness.

Between Apple and Google Inc (NASDAQ:GOOG), I recommend that readers become contrarian investors by selling Google and buying shares of Apple. I believe the valuation disparity between the two has become extreme, with Google trading at 25x earnings and Apple at 10x earnings.

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The article Forget Apple and Google, Buy this Fast-Growing Tech Stock originally appeared on Fool.com and is written by John Macris.

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