Rivals will find it pretty challenging (if not) impossible to make a meaningful dent in this business, especially as Qualcomm continues to reinvest in R&D to ensure that its chip technology remains the top choice among these phone rivals.
What's more, Qualcomm is able to enjoy all of this success and yet still has a very lucrative licensing business, which continues to be underappreciated.
All of this said, I do wonder whether rivals such as Broadcom (BRCM) and NVIDIA can become future threats to Qualcomm's business.NVIDIA has been making great strides in securing new business from some prominent companies. Its Tegra 3 chip has become a key component inside both Microsoft's Surface tablet as well as Google's Nexus 7. What's more, as Nvidia is shoring up its footing in the realm of mobility to compete more effectively, Nvidia still has not forgotten its PC roots. Should Qualcomm be concerned?
Bottom LineI love Qualcomm's business. Surprisingly, the company rarely gets mentioned in discussions of the best-run companies in the market today. Moreover, the company is in a fast-growing mobile market, which has yet to peak. With management raising revenue guidance, there is a chance that fiscal 2013 might be an even bigger year for Qualcomm. From that standpoint, I would be adding shares at current levels until the company shows meaningful signs of slowing growth. At the time of publication, the author was long AAPL. Follow @rsaintvilus This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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