Qualcomm stocks are likely to rise next year and the next two years as Apple failed to replace it with its own 5G chips. With the chip-maker retaining its monopoly over the market, experts believe its stock will continue to increase.
This is different from the forecasts a few months ago when it was revealed that Apple was working on starting making 5G chips in-house. At the time, the future looked bleak for Qualcomm as it was set to lose one of its biggest customers.
The latest news is that Apple cannot replace it anytime soon. TF International Securities analyst Ming-Chi Kuo revealed via a Twitter thread that the iPhone makers hit a development block in making 5G processors.
Thus, instead of supplying only 20% of iPhone chips, the processor maker would provide all the needed chips. Although, Apple is not letting this setback totally stop it.
“I believe Apple will continue to develop its own 5G chips. But by the time Apple succeeds and can replace Qualcomm, Qualcomm’s other new businesses should have grown enough to significantly offset the negative impacts caused by the order loss of iPhone 5G chips,” Kuo wrote.
The new businesses that the analyst mentioned above are Internet of Things chips, automobile chips, PC Arm chips, and VR headset chips.
Just after the news, there was a significant rise in Qualcomm stock prices while Apple stocks dropped by about 3%.
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