Displaying items by tag: qualcomm

(San Francisco)

Make no mistake, the US’ new blacklisting of Huawei is going to have a serious effect on American tech companies. Huawei is deeply integrated with many US suppliers of technology components, so the import and export restrictions will be significant. Here is a lit of US companies with major relationships with Huawei: Qualcomm, Broadcom, Xilinx, Synopsys, Marvell Technology, Seagate Technology, Western Digital, Texas Instruments, and Micron technology.

FINSUM: The impact on the top and bottom lines of all these companies will take some time to figure out, but for now we thought it would be useful to know which ones are at risk.

(New York)

Are you on the look out for income stocks? While their position in one’s portfolio is changing given rising rates, good income stocks, especially safe ones, are always of value. The S&P 500 is currently only yielding about 2%, which is now less than two-year Treasuries. However, one can find very strong stocks with 3-4% yields. Those include Target and Qualcomm, the latter of which is yielding 4.2% and is a very well-covered stock. Also check out Seagate, CenturyLink, Pitney Bowes, and Navient.

FINSUM: These picks come from what seems to be a very diligent dividend-focused manager that was recently profiled in Barron’s. Our big question is how much dividend stocks might suffer in a rising rate period.

(Washington)

President Trump has just sent a strong message to overseas investors: that US tech is not for sale. The president rejected Broadcom’s hostile takeover of Qualcomm. Although Broadcom is based in Singapore, the prospect of China, which loomed over the deal, was enough to get the White House to block the hostile takeover. American Qualcomm is in a heated race with overseas rivals, including Huawei, to build next-generation wireless technologies, and the US is warned about its strategic interests.

FINSUM: The US is right to worry about this, and we think blocking the deal was a great move. China runs its companies like China Inc., which puts the US at a bit of a structural disadvantage (because our firms don’t share as much info). Therefore, Washington needs to be very careful.