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QCOM's Unit Intros New AV2 Chip

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Qualcomm Atheros, Inc., which is a business arm of Qualcomm Inc. (QCOM - Free Report) , unveiled the new HomePlug AV2 (HPAV2) compliant solutions at Broadband World Forum.

The launch of new QCA7450/AR1540 chipset will not only benefit the customers to improve the network speed to more than 500 Mbps but will also allow them to use the connectivity at multiple rooms, supporting multiple devices through a particular feature called SmartLink Plus option.

Previously, HomePlug AV was used to support speed of up to 200 Mbps. Therefore, the launch of new HomePlug AV2 will improve the overall speed, thereby improving the quality of watching HD videos as well as 3D video contents. Moreover, it also allows better online gaming experience to its users. In addition, availability of SISO and MIMO will facilitate users to gain network speed of more than 1Gbps.

Last year, Qualcomm acquired Atheros Communications Inc., which specializes in developing Wi-Fi chips for televisions, video games, printers and other home devices. Atheros business division is currently placed under Qualcomm Technologies, Inc. (QTL) segment. So, the acquisition of Atheros has helped Qualcomm to diversify in the consumer electronics segment and at the same time has generated revenue growth of 27% year over year, from its QTL division.

Qualcomm’s plan to diversify into home segment division will not only help the company to drive its top line but will also help them to counter stiff competition from other chipset manufacturers like NVIDIA Corporation (NVDA - Free Report) and Broadcom Corporation

We maintain our long-term Neutral recommendation on Qualcomm Inc. Currently, it has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

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