The World’s Most Valuable Chip Company

Financial analysts are frightfully polite to execs but brutal in their judgments.

A bit like what you say to people at the party and what you say about them on the way home.

 

The analysts now rate Qualcomm as a more valuable company than Intel despite Intel having revenue of $50 billion and Qualcomm having revenue of $20 billion.

 

Yesterday the market cap of Intel was $105 billion, while the market cap of  Qualcomm was $106 billion.

 

The reason, of course, is expectation. Everyone knows the future is mobile. Qualcomm is the best in mobile; Intel, despite talking a good race, is an also-ran.

 

Meanwhile financial strength is draining from Intel; growing at Qualcomm.

 

Qualcomm has $27 billion cash, up from $21 billion this time last year, and no debt; while Intel has $10 billion of cash, down from $20 billion at the end of 2010, and $7 billion of debt.

 

Intel, of course, has to build fabs at $5 billion a pop leaving Qualcomm to spend its cash on producing better mobile chip-sets.

 

So you can see why the analyst chappies have placed their bets and have crowned Qualcomm the world’s most valuable chip company.

Tags: chip sets, expectation, Intel

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