Qualcomm vs. Broadcom: Which iPhones Supplier is a Better Buy?
StockNews
Published Apr 23, 2021 12:16PM ET
Updated Apr 23, 2021 01:30PM ET
Qualcomm vs. Broadcom: Which iPhones Supplier is a Better Buy?
Investors are betting big on semiconductor stocks because semiconductor chips are the backbone of most technologies and devices used in the current, digital era. As such, shares of two of the biggest chip makers—Qualcomm (NASDAQ:QCOM) and Broadcom (NASDAQ:AVGO)—are expected to gain significantly in the coming months based on rising demand for their products and services. But let’s find out which of these two stocks is a better buy now.Qualcomm Incorporated (QCOM) and Broadcom Inc. (AVGO) are two of the world’s biggest chip makers. They supply chips to Apple Inc. (NASDAQ:AAPL) among other tech giants. QCOM is a wireless technology company engaged in the development, launch and expansion of technologies such as 5G. AVGO designs, develops and supplies a range of semiconductor and infrastructure software solutions.
iPhones have a loyal consumer base. Consumers that use iPhones generally stay with the product, given its constant innovations and upgrades and compatibility with other AAPL products. In fact, iOS volumes increased 6.5% year-over-year in 2020.
Because QCOM and AVGO play an important role in the manufacture of iPhones, it is reasonable that they will witness increasing demand for their chips in the near term. Furthermore, the demand QCOM’s and AVGO’s products and services could also continue increasing, driven by end-use markets other than AAPL consumers.
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