The Spring Of 5g Is Coming. The Winter Of Qualcomm Stock Is Coming To An End.

Qualcomm (QCOM) has experienced years of stagnation in growth. Stock prices remain volatile for a long time because short-term optimism always ends in disappointment.

　　Qualcomm's decline may soon be over. Qualcomm will play a key role in pushing 5G into the market in the future. As a result, analysts have begun to forecast Gaotong's revenue and profit growth.

　　Analysts expect Qualcomm's financial situation to improve as 5G continues to push forward, and its stock price is expected to return to sustained growth.

　　Nearly ten years since 2010 have been the decade that Qualcomm longtime bulls want to forget. Qualcomm's stock price averages around $57, roughly the same as in 2011.

　　Corporate revenue peaked in 2014 and has been declining every year since. The lawsuits against Apple (AAPL) and Intel (INTC) also weighed on stock prices. Attempts to buy NXPI and AVGO failed to help boost stock prices.

　　But Qualcomm's decade of gloom may soon be over. The company has introduced the latest chip upgrade in the Miaolong 855 system, which enables the device to receive 5G signals. The upgrade is expected to appear on major Android devices as early as early as next year.

　　This is a big news for Qualcomm stock and the whole technology industry. According to the latest forecast, 5G is 20 times faster than current 4G LTE technology.

　　In addition, 5G technology can process 1000 devices per meter, reducing interference from other wireless devices. In addition, it will greatly enhance the use of the Internet of things, help the development of self driving cars, and may lead to new technologies that have not yet been invented.

　　These factors have enhanced analysts'optimism about Qualcomm stock. They expect the company to resume revenue growth in fiscal year 2020.

　　Qualcomm's financial indicators are also improving. Qualcomm currently expects a price-earnings ratio of 12.5. Such P/E ratios do not attract investors in a shrinking revenue environment, but as revenue rebounds, Qualcomm's valuation may look unusually low.

　　Investors should also note that technology giants such as NVDA and MSFT have seen their P/E ratios fall to similar levels as they seek strategic transformation. Now it seems that the turning point of Qualcomm is coming soon.

　　Other financial indicators also showed positive results. In the past five years, Qualcomm's profits have shrunk more than increased. But Wall Street expects profits to grow by 16.2% next year. They also forecast an average annual profit growth rate of 10.2% over the next five years.

　　We do not expect Qualcomm shares to rise sharply until next year's expected growth of 5G. However, dividends may stimulate investors to buy in advance.

　　This year's annual dividend is $2.48 per share, which makes the current yield 4.4%. In addition, the company increased its dividend payments for seven years in a row. Annual dividend payments are expected to grow in the coming years.

　　5G technology takes time to implement, and earnings-oriented investors may now buy the shares for dividends. But other investors are not expected to buy the shares immediately.

　　However, as 5G-driven devices begin to be used and Qualcomm's revenue and profits begin to grow, Qualcomm shares are expected to return to the track of sustained growth.