03/07/2017 7:00 am EST
We continue to recommendation Qualcomm (QCOM) in our High Tech-High Dividends model portfolio.
With EPS up 23%, Qualcomm reported even better numbers, but its share price sunk on word that Apple (AAPL) was suing Qualcomm for $1 billion, asserting that it had been overcharged that much for Qualcomm’s computer chips.
It didn’t help that the U.S. Federal Trade Commission also charged Qualcomm of monopolistic practices. In the end, Qualcomm will settle with Apple and do whatever it takes to mitigate the FTC charges.
Meanwhile, Qualcomm’s acquisition of NXP Semiconductors (NXPI), which is the leading maker of chips for automobiles, will make QCOM a major player in that rapidly expanding market.