We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GLW vs. QCOM: Which Tech-Materials Stock is the Better Buy Now?
Read MoreHide Full Article
Key Takeaways
Corning and Qualcomm both forecast solid sales and EPS growth for 2025.
GLW benefits from fiber optic demand, AI-driven connectivity, and restructured operations.
QCOM sees strength in 5G, automotive and AI PCs but faces fierce competition and trade risks.
Corning Incorporated (GLW - Free Report) and Qualcomm Incorporated (QCOM - Free Report) are key technology firms in the smartphone and communications value chain. Corning is a leading innovator in the glass substrate industry. In addition to being a pioneer in Gorilla Glass technology, the company manufactures specialty materials, including various formulations for glass, glass ceramics and fluoride crystals for specific industrial and commercial applications. It also manufactures optical fibers, glass substrates for LCD and PC displays, automotive glass solutions and various laboratory equipment.
Qualcomm offers high-performance, low-power chip designs for mobile devices, PCs, XR (Extended Reality), automotive, wearable, robotics, connectivity and AI use cases. The company boasts a comprehensive intellectual property portfolio comprising 4G, 5G and other technologies. Qualcomm’s brands include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems, and Qualcomm-branded 4G, 5G and IOT equipment. The company is currently integrating on-device generative AI into all of its product lines.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry to warrant a place in your investment portfolio.
The Case for GLW
Corning is benefiting from improved demand and the commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for GLW, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing.
Since both consumers and enterprises are using networks more extensively, and the generated data is increasingly being used to train AI models, there is a solid demand for Corning’s innovative optical connectivity products for generative AI applications.
GLW’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms to unlock opportunities for valuable synergies. These include Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
However, end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Since the Display Technologies and Specialty Materials segments are largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this narrows down the market. Building a significant market position in China amid a bitter U.S.-China trade relationship with heightened risk of the imposition of tariffs can impact its operations.
The Case for QCOM
Qualcomm is well-positioned to meet its long-term revenue targets, driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are also fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification.
The company is strengthening its foothold in the mobile chipsets market with innovative product launches. It had extended its Snapdragon G Series portfolio with the addition of next-generation gaming chipsets, Snapdragon G3 Gen 3, Snapdragon G2 Gen 2 and Snapdragon G1 Gen 2 chips.
Samsung, one of the major smartphone manufacturers, has deployed the Snapdragon 8 Elite Mobile Platform for its premium S25, S25 Plus and S25 Ultra devices. It is also placing a strong emphasis on developing advanced chipsets for the emerging AI PC market. The company has inked agreements to acquire MovianAI to augment its efforts in fundamental AI research.
Despite efforts to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Shift in the share among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from the Snapdragon platform.
The company is also facing stiff competition from Samsung’s Exynos processors in the premium smartphone market, while MediaTek is gaining market share in the mid-range and budget smartphone market. Qualcomm’s extensive operations in China are likely to be significantly affected by the U.S.-China trade hostilities.
How Do Zacks Estimates Compare for GLW & QCOM?
The Zacks Consensus Estimate for Corning’s 2025 sales implies a year-over-year rise of 11.1%, while that of EPS indicates growth of 26%. EPS estimates have been trending northward (up 0.4%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Qualcomm’s fiscal 2025 sales suggests year-over-year growth of 12%, while that for EPS implies a rise of 16.3%. The EPS estimates have remained flat over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of GLW & QCOM
Over the past year, Corning has surged 79.8% compared with the industry’s growth of 89.5%. Qualcomm has gained 0.7% over the same period.
Image Source: Zacks Investment Research
Qualcomm looks more attractive to Corning from a valuation standpoint. Going by the price/sales ratio, Corning’s shares currently trade at 4.24 forward sales, slightly higher than 4.12 for Qualcomm.
Both companies expect their sales to improve in 2025. In terms of price performance, Corning has outperformed Qualcomm, although it is trading a bit expensive compared with the latter. With exposure to long-term trends (data centers, telecom infrastructure and advanced glass) and a solid Zacks Rank, GLW currently appears to be relatively better placed than Qualcomm. Consequently, Corning seems to be a better investment option at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GLW vs. QCOM: Which Tech-Materials Stock is the Better Buy Now?
Key Takeaways
Corning Incorporated (GLW - Free Report) and Qualcomm Incorporated (QCOM - Free Report) are key technology firms in the smartphone and communications value chain. Corning is a leading innovator in the glass substrate industry. In addition to being a pioneer in Gorilla Glass technology, the company manufactures specialty materials, including various formulations for glass, glass ceramics and fluoride crystals for specific industrial and commercial applications. It also manufactures optical fibers, glass substrates for LCD and PC displays, automotive glass solutions and various laboratory equipment.
Qualcomm offers high-performance, low-power chip designs for mobile devices, PCs, XR (Extended Reality), automotive, wearable, robotics, connectivity and AI use cases. The company boasts a comprehensive intellectual property portfolio comprising 4G, 5G and other technologies. Qualcomm’s brands include Snapdragon systems-on-chip, FastConnect Wi-Fi and Bluetooth systems, and Qualcomm-branded 4G, 5G and IOT equipment. The company is currently integrating on-device generative AI into all of its product lines.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry to warrant a place in your investment portfolio.
The Case for GLW
Corning is benefiting from improved demand and the commercialization of its innovations. Its capabilities are becoming increasingly vital to diverse industries. The fiber optic solutions business is likely to be the key growth driver for GLW, aided by the increasing use of mobile devices that require efficient data transfer and networking systems. Supporting this trend is the proliferation of clouds, resulting in increased storage and even virtual computing.
Since both consumers and enterprises are using networks more extensively, and the generated data is increasingly being used to train AI models, there is a solid demand for Corning’s innovative optical connectivity products for generative AI applications.
GLW’s operating structure has been reorganized to align executive management and business teams around five Market-Access Platforms to unlock opportunities for valuable synergies. These include Mobile Consumer Electronics, Optical Communications, Automotive, Life Sciences and Display. Corning has a leadership position in each of these markets, which, along with focused marketing efforts, has proved conducive to growth. In addition, the reorganization has increased efficiency by creating the opportunity to reuse assets and capabilities developed for customers in one market ecosystem to serve customers in another.
However, end market diversification is limited within the Display and Optical segments, which account for more than half of total revenues. Since the Display Technologies and Specialty Materials segments are largely dependent on consumer spending, particularly on LCD TVs and mobile PCs, this narrows down the market. Building a significant market position in China amid a bitter U.S.-China trade relationship with heightened risk of the imposition of tariffs can impact its operations.
The Case for QCOM
Qualcomm is well-positioned to meet its long-term revenue targets, driven by solid 5G traction, greater visibility and a diversified revenue stream. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor company for the intelligent edge.
Qualcomm is witnessing healthy traction in EDGE networking, which helps transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are also fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification.
The company is strengthening its foothold in the mobile chipsets market with innovative product launches. It had extended its Snapdragon G Series portfolio with the addition of next-generation gaming chipsets, Snapdragon G3 Gen 3, Snapdragon G2 Gen 2 and Snapdragon G1 Gen 2 chips.
Samsung, one of the major smartphone manufacturers, has deployed the Snapdragon 8 Elite Mobile Platform for its premium S25, S25 Plus and S25 Ultra devices. It is also placing a strong emphasis on developing advanced chipsets for the emerging AI PC market. The company has inked agreements to acquire MovianAI to augment its efforts in fundamental AI research.
Despite efforts to ramp up its AI initiatives, Qualcomm has been facing tough competition from Intel in the AI PC market. Shift in the share among OEMs at the premium tier has reduced Qualcomm's near-term opportunity to sell integrated chipsets from the Snapdragon platform.
The company is also facing stiff competition from Samsung’s Exynos processors in the premium smartphone market, while MediaTek is gaining market share in the mid-range and budget smartphone market. Qualcomm’s extensive operations in China are likely to be significantly affected by the U.S.-China trade hostilities.
How Do Zacks Estimates Compare for GLW & QCOM?
The Zacks Consensus Estimate for Corning’s 2025 sales implies a year-over-year rise of 11.1%, while that of EPS indicates growth of 26%. EPS estimates have been trending northward (up 0.4%) on average over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Qualcomm’s fiscal 2025 sales suggests year-over-year growth of 12%, while that for EPS implies a rise of 16.3%. The EPS estimates have remained flat over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of GLW & QCOM
Over the past year, Corning has surged 79.8% compared with the industry’s growth of 89.5%. Qualcomm has gained 0.7% over the same period.
Image Source: Zacks Investment Research
Qualcomm looks more attractive to Corning from a valuation standpoint. Going by the price/sales ratio, Corning’s shares currently trade at 4.24 forward sales, slightly higher than 4.12 for Qualcomm.
Image Source: Zacks Investment Research
GLW or QCOM: Which is a Better Pick?
Corning sports a Zacks Rank #1 (Strong Buy) while Qualcomm carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Both companies expect their sales to improve in 2025. In terms of price performance, Corning has outperformed Qualcomm, although it is trading a bit expensive compared with the latter. With exposure to long-term trends (data centers, telecom infrastructure and advanced glass) and a solid Zacks Rank, GLW currently appears to be relatively better placed than Qualcomm. Consequently, Corning seems to be a better investment option at the moment.