Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Berenbaum Says Qualcomm His ‘Single Best Buy’: Tom Keene

Nov. 14 (Bloomberg) -- Daniel Berenbaum, an analyst at MKM Partners LLC, said Qualcomm Inc. is his “single best buy” as the largest seller of mobile-phone semiconductors benefits from price increases and surging demand for Web-enabled handsets.

“Qualcomm basically rings the cash register anytime anybody buys an advanced smartphone,” said Berenbaum in a radio interview with Tom Keene and Joe Brusuelas on “Bloomberg Surveillance” in New York today.

Qualcomm, based in San Diego, gained a bigger market value than Intel Corp. for the first time last week after it forecast results that topped analysts’ estimates, adding to evidence that smartphones are gaining ground at the expense of computers. Under Chief Executive Officer Paul Jacobs, Qualcomm is gaining as consumers in developed nations snap up pricey new phones while those in emerging markets upgrade to devices that provide Web access. Intel, a laggard in the market for mobile-phone chips, is being hurt by slack personal-computer sales.

Qualcomm’s current market capitalization of $105.2 billion tops Intel’s $99.3 billion. Qualcomm makes most of its revenue from baseband chips that connect phones to cellular networks.

Even as Apple Inc., one of Qualcomm’s biggest customers, enters a bear market, the chipmaker can gain from growth prospects of other clients, including smartphone makers HTC Corp. and Samsung Electronics Co., Berenbaum said.

“Qualcomm can continue to benefit even if Apple is perceived not to,” Berenbaum said. “We’re going to these advanced networks. Qualcomm is able to extract a higher price, not just for its chips, but it’s seeing a better mix outside of Apple.”

To contact the reporters on this story: Ryan Faughnder in New York at rfaughnder@bloomberg.net; Tom Keene in New York at tkeene@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.