Back to top

Image: Shutterstock

Qualcomm Forecasts Strong 5G Growth on Handset Penetration

Read MoreHide Full Article

Qualcomm Incorporated (QCOM - Free Report) recently communicated that it forecasts global smartphone makers to ship 450 million 5G handsets in 2021 with an additional 750 million in 2022, per Reuters. The company is considered to be one of the largest manufacturers of wireless chipset built on baseband technology. It has been trying to retain its leadership in 5G, chipset market and mobile connectivity with several technological feats and state-of-the-art product launches.

The chip maker categorically stated that 5G adoption will be faster than 4G owing to the timing of commercialization of the technology in China and availability of chipsets across different price points. Qualcomm has redefined the computing and mobile ecosystem around the world with the launch of QCA6390 Connectivity system-on-a-chip product.

In September, the company revealed its plan to develop 5G chipsets that are compatible in mid-priced mobiles to make such devices widely available to masses. The chips are expected to hit the market next year and likely encourage consumers to upgrade to the super-fast network with increased deployment of 5G technology globally. Qualcomm is mulling to add 5G capabilities to its cheaper chipset versions of Snapdragon 6 and 7 series.

In April, Qualcomm reached a surprise settlement that cleared the road for iPhones to once again use its modem chips. The company continues to execute its objectives, which include driving the global transition to 5G, protecting the value of its technology, and expanding into new industries and product categories for future growth.

The company is poised to benefit from the adoption of its Snapdragon 5G Modem-RF Systems in more than 150 5G design wins. However, it faces severe competition from low-cost rival chip makers like MediaTek. The Huawei export ban has also led to challenging industry conditions.

Qualcomm has a long-term earnings growth expectation of 14%. Driven by diligent execution of operational plans, the stock has rallied 54.9% compared with the industry’s growth of 16.7% in the past year.



The Zacks Consensus Estimate for its current-year earnings has been revised 4.3% upward over the past 30 days. The company topped earnings estimates in the trailing four quarters by 8.7%, on average.

Qualcomm currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader industry are Ubiquiti Inc. (UI - Free Report) , PCTEL, Inc. and Verizon Communications Inc. (VZ - Free Report) . While Ubiquiti sports a Zacks Rank #1, PCTEL and Verizon carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ubiquiti has a long-term earnings growth expectation of 9.4%.  

PCTEL surpassed earnings estimates in the trailing four quarters, the average surprise being 150.6%.

Verizon surpassed earnings estimates in the trailing four quarters, the average surprise being 2.2%.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


QUALCOMM Incorporated (QCOM) - $25 value - yours FREE >>

Verizon Communications Inc. (VZ) - $25 value - yours FREE >>

Ubiquiti Inc. (UI) - $25 value - yours FREE >>

Published in