Qualcomm is now bigger than Intel

[Arachnotronic]

Whodathunkit?

Qualcomm's market capitalization is now $103B. Intel's is a mere $100B. Intel makes over twice the net income that Qualcomm does...

Does this not make sense to anybody else?

 

[meloz]

Does this not make sense to anybody else?

LTE has been kind to Qualcomm.

 

[Conscript]

Market cap is a product of stock price, stock price is a product of psychology, not net income.

Sent from my Lumia 810 using Board Express

 

[Blitzvogel]

And the psychology is that Qualcomm is continuing to innovate and produce excellent new SoCs.

 

[Coup27]

Intel has total assets of $71bn and they have 100,000 employees. Qualcomm have total assets of $30bn and 21,000 employees. You can play this game with all of the other figures on Wikipedia as well and Intel wins hands down on all of them

 

[HurleyBird]

We'll see how long this lasts

Intel has far more engineering resources, the best fabs, and is dead set on making a name for itself in the SoC market. They have a very stable base with their unassailable x86 pseudo-monopoly.

Qualcom is earning it's fortune in a competitive market with many rivals, they have a lot more to lose right now than they do to gain, and if Intel's forays into the SoC market bear fruit Qualcom will likely lose share to them.

 

[Obsoleet]

The times they are a changing'. Better get used to it and on with it.

Really though, we're going to start seeing the increasing commoditization of the mature, overly powerful PC market. From going socketless CPUs to APUs.
It's honestly about time too, your rig has 16GB of RAM.. I know that can be put to use, and I intend to get around that amount (hoping to wait for DDR4) but really, for 90% of users.. including people who use tons of virtual machines like myself this kind of stuff is a bit much.
There's some inertia going on, but we'll see some leveling off.

 

[Homeles]

And the psychology is that Qualcomm is continuing to innovate and produce excellent new SoCs.

So is Intel.

 

[Arachnotronic]

And the psychology is that Qualcomm is continuing to innovate and produce excellent new SoCs.

Hint: It's licensing royalties. Qualcomm only made $2.3B or so in net income from sales of modems, Snapdragons, etc.

All the rest of it was from its patents

 

[ViRGE]

Whodathunkit?

Qualcomm's market capitalization is now $103B. Intel's is a mere $100B. Intel makes over twice the net income that Qualcomm does...

Does this not make sense to anybody else?

Investors have been suffering ARM fever for the better part of the last year now. Qualcomm has some level of growth potential that Intel can't match, but all things considered this is a combination of exuberance over all things ARM paired with a paranoia of all things x86. Give it a few quarters for investors to see that these companies aren't growing and aren't making money like they thought they would, and the situation will correct itself.

 

[Arachnotronic]

Investors have been suffering ARM fever for the better part of the last year now.

Tell me about it. That being said, I recently went short ARM and am, ironically enough, long Qualcomm (mainly because, right now, they've got the 4G comms stuff + apps processors cornered; plan to sell once Intel demonstrates a real competitor)

ARM trades at 72x earnings and that's with every smartphone sale adding to its coffers today. They're on track to hit $1B+ in revenues in 2013! Too bad their market capitalization is $17.5B. Qualcomm at least trades at sub 20x earnings...

 

[ShintaiDK]

Just look at Apple. That fever is gone. I guess they went to Qualcomm.

 

[ViRGE]

Tell me about it. That being said, I recently went short ARM and am, ironically enough, long Qualcomm (mainly because, right now, they've got the 4G comms stuff + apps processors cornered; plan to sell once Intel demonstrates a real competitor)

ARM trades at 72x earnings and that's with every smartphone sale adding to its coffers today. They're on track to hit $1B+ in revenues in 2013! Too bad their market capitalization is $17.5B. Qualcomm at least trades at sub 20x earnings...

Qualcomm is a strong company. The fact that they're using their LTE licensing profits to scoop up AMD GPU employees left and right shows that they have a long-term plan and the means to achieve their goals. They just aren't a $100B company (yet).

 

[mikk]

Intel is much bigger than Qualcomm.

 

[MisterMac]

I think most agree Intel still has some every oppertunity to take on anything in the Arena.

At least with current plans\offerings - and a future outlook of incoming Atom uARCH\Broadwell.


In other words - it's intel's to loose more than it is Qualcomm's to win.

Aren't we all just waiting to see if the big gorilla can be nimble and get some SoC wins?

If they win - stock will go crazy.
If they loose - well stock will probably also go crazy

 

[tommo123]

is it fair to say that if it came closer to crunch time (for intel) in this x86 vs arm race that intel (having an ARM licence) could release their own ARM SOCs for phones/tablets and with their superior fab tech undercut everyone else in the game? even samsung?

maybe it's a last resort plan? i mean it would cause problems but, it would seriously hurt pretty much every other player and slash their revenues since they couldn't compete in a price war with intel. kill them off, then bring back x86 chips. or adapt arm so it runs proprietary intel extensions that no one else is given a licence to run

 

[Idontcare]

And the psychology is that Qualcomm is continuing to innovate and produce excellent new SoCs.

So is Intel.

The thing is Intel never really figured out how to finesse the handset market like the other players have.

There was a very solid reason why their efforts to get into the handset market in 2005 was doomed from the start, and so far Intel isn't really showing much in the way of having figured out out to out-maneuver the other handset chip designers.

Intel has time on its side though. The laptop market is not going anywhere, even as tablets and smartphone form factor adoption rates increase they are not displacing laptop sales (yet) in the way that growing laptop sales displaced desktop sales.

TI lost its dominant ~80% marketshare in handsets to Qualcomm, Apple, and Google, over the span of about 5 yrs because those three companies knew what it took to make the entire handset supplier ecosystem "go". Based on what Intel has done so far, even in this more recent attempt, it is not clear to me that they have yet to understand how the handset industry functions.

They know how to be a tooth on the cog, but they have yet to figure out how to be the cog itself...and without that insight and vision I just don't see them presenting any sort of challenge to Qualcomm now than they did in 2005 with their previous (failed) attempt.

 

[Homeles]

Intel's been stepping up their OEM relations in preparation for Haswell. I wouldn't put it past them to improve and apply things to the smartphone market eventually.

 

[Ferzerp]

Market cap doesn't equate to size. It is a measure of one thing. Price. It is the price at which you could buy 100% of the shares of a company (ignoring what your purchases would do to the price).

It has nothing to do with size, value, importance, etc. It is price.

 

[Concillian]

Does this not make sense to anybody else?

It makes sense in a world where Facebook can IPO for what it did.

Stock prices are not based on logic.

 

[Idontcare]

Intel's been stepping up their OEM relations in preparation for Haswell. I wouldn't put it past them to improve and apply things to the smartphone market eventually.

If Intel can out-qualcomm qualcomm, out-apple apple, or out-google google then I'll be the first in line at AT&T to get their latest and greatest smartphone. I am all for a new overlord or two to roll into town

 

[Arachnotronic]

If Intel can out-qualcomm qualcomm, out-apple apple, or out-google google then I'll be the first in line at AT&T to get their latest and greatest smartphone. I am all for a new overlord or two to roll into town

They can if they can out-do Krait/Swift.

Right now, with "Saltwell", they're not exactly putting their best foot forward. I'm hoping the aggressive Atom roadmap will enable them to take the lead.

If not, then Intel is going to be in a world of hurt as Qualcomm, Nvidia, Samsung, and Apple scale up their designs to fit into higher segments of compute.

 

[Homeles]

If not, then Intel is going to be in a world of hurt as Qualcomm, Nvidia, Samsung, and Apple scale up their designs to fit into higher segments of compute.

Am I the only one that feels that Nvidia's Tegra offerings have been pretty lackluster?

 

[Arachnotronic]

Am I the only one that feels that Nvidia's Tegra offerings have been pretty lackluster?

Yeah, definitely. But I think all these SoC guys have needed to "find their feet", so to speak. Tegra 4 with 4x A15's + Kepler GPUs + a dual channel memory controller sounds like something that'll be quite powerful.

 

[gevorg]

time to buy INTC... or short QCOM