Qualcomm is an established high-end provider for mobile phone manufacturers like Samsung, Nokia, Sony, HTC and Google Inc (NASDAQ:GOOG). Its processor chips serve numerous Android and Windows-powered phones and tablets. Furthermore, it now supplies Apple with the wireless baseband chips used in iPhone 4S and iPhone 5 devices, replacing Intel.
Its broad product offering positions QUALCOMM, Inc. (NASDAQ:QCOM) to benefit from the market expansion. The Atheros Communications acquisition further integrates the company, allowing it to enter the sector of consumer electronics.
The company holds thousands of patents and royalty-paying licenses worldwide, which help to contain the advance of its competitors. As 3G networks are updated to provide better service to customers, QUALCOMM, Inc. (NASDAQ:QCOM)’s royalty incomes should be positively impacted.
A Market-Share Leader
The thing about the tech business is that there is room for growth everywhere and for everyone; it’s just a matter of being creative enough. Broadcom Corporation (NASDAQ:BRCM) stock may not have caught your attention over the past year as its price barely changed. However, the company has outperformed expectations, delivering a 10% growth in revenue year over year and 3.4% EPS growth, which beat the consensus estimate by 16%. I’d say, “buy.” But first, take a look at some reasons to back this recommendation, listed below.
Already a market-share leader in providing chips for enterprise-networking set-top boxes and many other areas, the company’s wide product offering provides extra advantages to compete for an increasing market share in the growing connectivity sector while still producing semiconductors, which provide a more steady revenue source. In addition, Broadcom supplies big clients like Apple with high-tech chips that integrate various functions and has recently attained several other major customers like Samsung and Nokia.
The firm’s strong focus on research and development provides further compelling arguments to trust in its future, especially as most of its employees work in this area. Thanks to its valuable human capital, Broadcom Corporation (NASDAQ:BRCM) has remained innovative since its beginnings, delivering consistent and strong growth. The uptrend in demand of pay TV and internet access in developing countries, especially in India and China, provide even more opportunities for expansion. Finally, its scale is worth mentioning, as it leads the sector, having shipped products in excess of two billion in 2012. This strengthens the company’s position for long-term growth in the semiconductor market (Zacks Research).
Bottom Line
Diversifying your investments is usually a good idea, especially if you choose good companies. All of those described above provide very promising outlooks for both the short and long term. I would recommend buying any or all of these stocks.
The article 3 Big Technology Stocks to Give a Closer Look originally appeared on Fool.com and is written by Victor Selva.
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