Qualcomm is the main provider of 5G enable mobile phone processors. Its main product is the Snapdragon 8 G1. While the mobile handset environment is in a full consolidation, QCOM continues to see good demand performance in the top-tier chipset market.
Qualcomm has a highly diversified product offering which, at present market conditions, plays in its favor. Given this it has been able to generate free cash flow and reduced largely the amount of debt it was running before. While the weak market outlook is weak, QCOM remains undervalued compared to its peer group because it has one of the best diversified revenue streams and has made excellent capital allocation which we believe continue to be done in the same manner in the future