Make no mistake. Qualcomm is still vying with Intel when it comes to who has the biggest market capitalization. The two US-based semiconductor companies have been swapping places over the last 12 months as their market shares fluctuate and although Intel currently has the upper hand, it is likely that Qualcomm stock will surge when Wall Street opens later today.
Shares of the company are already up by four per cent in pre-market transactions after the company’s quarterly revenue beat analysts’ expectations. It followed some excellent news from one of its closest partners, Google, after the latter announced the new Nexus 7 tablet yesterday which uses a Qualcomm SoC and it emerged that Motorola Mobility, a Google subsidiary, licensed IP for a new chip called the X8.
While the former means secures a massive win for Qualcomm in the short term (with millions of the new Nexus 7 tablets likely to be sold with a Snapdragon chip onboard), it is the fact that Qualcomm is quietly positioning itself as a purveyor of IP which is more exciting and lucrative long term, elevating itself above the rest of the competition.
It is a little known fact but Qualcomm has nearly 300 licensees of all sizes and including a number of rivals (AMD, Mediatek, Samsung, Intel) as well as an impressive amount of blue chip firms ranging from Toshiba to Panasonic.
What is also rapidly becoming bloody obvious is that the world’s biggest fabless semiconductor company is in fact a solution provider rather, one that is able to blend seamlessly an array of technologies that none of its rivals can match: wireless charging, display, OS, IoE, LBS, wireless, graphics, CPU, sensors.