Qualcomm (NASDAQ: QCOM) stock has corrected significantly, falling by about 20% over the previous month. However, bulls seem to ignore Qualcomm's near-ideal market position in the smartphone chipset market, an industry on track for massive growth. This possibility alone gives investors good reason to treat the post-earnings sell-off in this chip stock as a buying opportunity.
Qualcomm's chipsets act as the "brain" of a smartphone, receiving and carrying out essential commands. For now, most smartphone manufacturers depend on Qualcomm's chipsets, technology that Qualcomm licenses to other manufacturers.
This has become particularly important amid the rising popularity of the 5G devices. Whereas the previous 4G standard brought speeds of between 12-36 megabytes per second (Mbps), 5G speeds commonly reach 300 Mbps and beyond.
Source Fool.com