Why QUALCOMM should buy ARM tomorrow morning February 21, 2012Posted by deminvest in investment.
Tags: ARM, ARMH, chip, mobile computing, QCOM, Qualcomm, smatphone
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QUALCOMM Incorporated (QCOM) is a great company.
QCOM reached had 50% market-share on smartphone APPS processor market in 2012. QUALCOMM chips power Apple iPads, iPhones and most Androids, Samsung Galaxy S2 included.
It should be no surprise to anybody to know that QCOM revenue grew 40% in a year and earnings went up 20%.
So why is this healthy fast growing company priced on a forward price on earning of 15? Easy to answer: a small company, ARM, owns the technology that Qualcomm uses. Qualcomm is after all a manufacturer of ARM chips.