This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 3 Tech Stocks for 2013


Chip maker Qualcomm continues to shine brighter than most tech stocks, boosted by explosive smartphone demand and consumers' appetite for superfast networks.

Widely regarded as one of the big beneficiaries of the push to high-speed LTE networks, Qualcomm provides chips to a host of gadget makers, including Apple, Samsung, Nokia (NOK), LG and HTC.

For example, the San Diego-based company has a power management chip, an LTE modem and an RF Transceiver within the new iPhone 5.

"Qualcomm remains our top large-cap pick as the company's focus on integration and a 4G modem leadership helps it outperform a tough environment," wrote Ian Ing of Lazard Capital Markets in a recent note. The analyst, who has a buy rating and $79 price target for Qualcomm, predicts "full steam ahead" in 2013.

There's clearly plenty of momentum behind the company. Qualcomm blew past Wall Street's estimates for its third-quarter results earlier this month, boosted by exceptionally strong demand for smartphones. The company also delivered healthy guidance.

This contrasts sharply with the cautious tone struck by other component makers recently. Intel (INTC) cited weak demand in its third-quarter results last month, while Texas Instruments (TXN) delivered weaker-than-expected guidance and announced layoffs.

Qualcomm, however, shrugged off tech spending headwinds. At its annual analyst event in mid-November, the chip maker projected 20% to 26% revenue growth in fiscal 2013 and non-GAAP operating income growth between 14% and 21%. The company's also looking for a double-digit Compound Annual Growth Rate (CAGR) on revenue and EPS over the next five years.

Unsurprisingly, Wall Street sentiment towards the company has been overwhelmingly positive, with analysts predicting huge opportunities in emerging markets.

"We continue to be buyers with 2013 catalysts including China Mobile, new products, iPhone and a secularly growing smartphone market," wrote Sterne Agee analyst Vijay Rakesh, in a recent note. Some 65% of China Unicom's phones contain Qualcomm processors, added the analyst, noting that China Mobile presents a big opportunity for the firm in the first half of next year.

Qualcomm's Snapdragon processors already support a wide flavor of 3G and 4G LTE technologies, something that's key in countries such as China, where a diverse range of networks are in use. The next version of Qualcomm's Snapdragon processors will be introduced in the first quarter of 2013.

Qualcomm, which overhauled its corporate structure earlier this year in an attempt to speed up product delivery and protect patents, also discussed the opportunities around Small Cell technology during its analyst event.

Similar to Femto Cell, Small Cell refers to a low-power radio technology which can be deployed wherever users need to boost their data capacities. Qualcomm says that the same chips it sells to phone manufacturers can be used within Small Cell devices, potentially opening the door to a lucrative new revenue stream.

TheStreet Ratings has a 'buy' rating on Qualcomm.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.40 -1.50%
AMZN $666.02 11.00%
EMC $26.01 -0.69%
GOOG $697.14 0.89%
QCOM $50.34 -3.40%


Chart of I:DJI
DOW 17,810.62 +36.98 0.21%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs