Qualcomm's Sales Rise On 5G Chip Strength -- Is the Stock a Buy?
Mobile chip leader Qualcomm (NASDAQ: QCOM) just turned in yet another fantastic quarterly report card, notching a 36% year-over-year increase in revenue in third-quarter fiscal 2022 (the three months ended June 26, 2022). Adjusted earnings per share gained even more, up 54% year over year, benefiting from improving profit margins as Qualcomm chips sop up a larger share of smartphones.
Thank the 5G mobile upgrade cycle for this -- and really for the whole incredible run Qualcomm has been on in recent years. Total revenue is on pace to more than double compared to what the company generated in fiscal 2020. And given that 5G is being applied to far more devices than just smartphones, there's a lot to like about where Qualcomm sits right now.
The upgrade cycle to 5G has been a massive tailwind filling Qualcomm's sails. People have been buying more smartphones in the last couple of years, in order to take advantage of the improved network performance 5G brings with it. However, that's only part of the story. Going from 4G to 5G, especially on the premium processor side where Qualcomm has focused much of its attention, means big gains in chip content per device and chip average selling price (ASP).
Source Fool.com
