Trading Chips: Broadcom Corporation (BRCM), QUALCOMM, Inc. (QCOM), Intel Corporation (INTC) and Others Can Win Either Way

QUALCOMM, Inc. (NASDAQ:QCOM)

Another chipmaker, but one less quiet than Broadcom Corporation (NASDAQ:BRCM). QUALCOMM, Inc. (NASDAQ:QCOM) makes chips for all forms of electronics, including things as far afield as mobile devices, networking solutions and even gesture recognition through the newly acquired EPOS Development. It’s a good, solid and established company with an operating margin of 29.28% last year. I like that number a lot.

The good part is represented in the share price. After issuing guidance below expectations last April the stock took a header for about six weeks. Since then it’s been doing well, climbing 23% since bottoming out in June. It also pays a 1.52% dividend yield for those of you who want your tech stocks to behave like mature firms (hint: that should be all of you).

Texas Instruments Incorporated (NASDAQ:TXN)

Another semi-famous name that people old enough to remember the 1980s and handheld calculators will know but might not be so familiar to the younger set. Texas Instruments in 2011 sold more than $14 billion worth of integrated chips, third behind Intel Corporation (NASDAQ:INTC) and Samsung, believe it or not. These firms can sneak up on investors sometimes.

Another stock that had a summer 2012 slump, TXN bottomed out in July last year at $26.43 but mounted a real resurgence since then, growing 30.3% since that time. The firm also posted an operating margin of 8.86% for Q4 last year and raised its dividend 23.5% to a yield of 3.25%. TXN is a keeper and an investment your should be into.

Investing in chip makers is a more subtle play than most people think. It’s a means by which a smart investor can get involved in technology without all the fuss and bother of being forced to choose sides in some pointless media-induced tech skirmish that does nothing except stir up people and sell advertising. Think of it as a way of insulating yourself from the vagaries of CEO discussions and the back and forth of talking heads screaming at each other. Think about it for your portfolio.

The article Trading Chips: Broadcom and Others Can Win Either Way originally appeared on Fool.com and is written by Nate Wooley.

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