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The recently launched “Fire TV” set-top box by Amazon.com Inc. (AMZN - Analyst Report), runs on the quad-core “Snapdragon 600” microprocessor of the world’s largest mobile chipset developer Qualcomm Inc. (QCOM - Analyst Report).

Snapdragon 600 – Qualcomm’s next-generation microprocessor – is integrated with a 1.7GHz quad-core Qualcomm Krait 300 and a Qualcomm Adreno 320 GPU. These chipsets provide 40-75% better performance over the S4 Pro series and are the first chips operating on the TSMC 28nm technology.

We expect increased shipment of Qualcomm’s Snapdragon 600 and 800, going forward. Qualcomm has more than 250 royalty bearing licensees worldwide and over 90 single-mode OFDMA licensees. The company also launched its innovative RF360 Front End Solutions which addresses LTE fragmentation faced by most large handset manufacturers.

Qualcomm reported mixed financial results for the first quarter of fiscal 2014. While net income surpassed the Zacks Consensus Estimate, total revenue fell below the same. However, management raised its financial outlook for fiscal 2014. Quarterly total revenue of $6,622 million was up 10% year over year. During the first quarter of fiscal 2014, Qualcomm shipped approximately 213 million CDMA-based MSM chipsets, up 17% year over year. This figure far exceeded the company’s guidance of a mid-point of 202.5 million.

Other Stocks to Consider

Currently, Qualcomm carries a Zacks Rank #2 (Buy). Other well-performing stocks in the wireless equipment industry that warrant a look includes Juniper Networks Inc. (JNPR - Analyst Report) and ShoreTel Inc. (SHOR - Snapshot Report). Both these stocks carry a Zacks Rank #1 (Strong Buy).

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