Semiconductor major Qualcomm Incorporated (NASDAQ: QCOM) recently announced that it has strengthened its partnership with Korean electronics giant Samsung to extend its patent license agreement to power Samsung mobile phones. The development has further strengthened Qualcomm’s standing in the Wall Street community and it gave a Strong Buy signal for the stock.
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Qualcomm & Samsung’s Alliance to Offer Better Mobile Services
Qualcomm’s extended patent license agreement with Samsung includes delivering superior consumer experiences across 3G, 4G, 5G, and upcoming 6G mobile devices through the end of 2030. The financial terms of the deal were not disclosed.
Further, the partnership will entail the use of Qualcomm’s Snapdragon platforms for future Samsung Galaxy products, including mobile phones, PCs, and tablets, among others.
The extended partnership will be carried out through Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated.
Management’s Commentary
CEO of Qualcomm Incorporated, Cristiano Amon, said, “The extension of our licensing agreement is further evidence of our mutual commitment to long-term collaboration. Our relationship with Samsung has never been stronger. For more than two decades we’ve worked together to lead the industry and we are pleased to continue this strategic partnership to develop innovative technologies and products using Snapdragon platforms to power more Samsung premium devices globally.”
Wall Street’s Take
Yesterday, Rosenblatt Securities analyst Kevin Cassidy reiterated a Buy rating on the stock with a price target of $220, which implies upside potential of 43.4% from current levels.
Consensus among analysts is a Strong Buy based on 10 Buys and one Hold. The QCOM average price target of $196.56 implies upside potential of 28.1% from current levels. Shares have gained 7.7% over the past year.
Investors Remain Upbeat About Qualcomm Stock
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on QCOM. Further, 12% of the top portfolios tracked by TipRanks, increased their exposure to QCOM stock over the past 30 days.
Key Takeaways
Qualcomm’s extended partnership with Samsung further solidifies the company’s leading position in the semiconductor space. The deal should result in increased revenues and profitability for Qualcomm.
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