Qualcomm Takes Intel's Throne
www.fool.com
"Thanks to Qualcomm's pristine balance sheet with roughly $30 billion in net cash, very reliable free cash flow, and a solid multi-year path for growth, it has now become the world's most valuable semiconductor company, even with a revenue base that's just half of Intel's"
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"..Patents
Roughly two-thirds of Qualcomm's profits actually come from its wireless technology licensing business. This is a fabulously profitable business segment, as the company collects royalties on just about every 3G/4G device sold. Now, since the transition to 3G/4G is happening at a rather brisk pace...Qualcomm should see some very nice top and bottom-line growth in its QTL business segment.
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The remaining one-third of the company's profit base (but the vast majority of its revenue base) comes from chips. Think Snapdragon SoCs, Gobi modems, Atheros Wi-Fi, and various other wireless components. Qualcomm's business model works because it has a nearly inexhaustible source of income from its patent licensing business, meaning that the company can..aggressively invest in new areas of growth."
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"Intel's operating profit comes from two divisions: the first is the PC client group, which consists of CPUs/SoCs/chipsets for notebooks, desktops, and high-end tablets, and the second is the data-center group, which consists of server CPU/chipset sales and other various data-center-oriented products...and, combined, they generate far more operating income than Qualcomm's businesses generate, but they're not as "safe"
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