Chip makers have been big news since the pandemic created shortages last year. The future may bring even more interest and demand for semiconductors.
Chistiano Amon, president and CEO of Qualcomm QCOM, the semiconductor maker, told Jim Cramer on a recent episode of the Mad Money TV show how the market for chips is expanding as the Internet of Things (IoT) opens up new opportunities.
The company recently delivered a 22-cents-a-share earnings beat on a 30% rise in revenues.
Amon said Qualcomm is now about a lot more than just 5G and mobile handsets. The company has a diversified portfolio of products, including automative, where partners like General Motors GM are helping to bring assisted and autonomous driving features into reality.
Qualcomm was one of three chip-related companies identified by Real Money's Bob Ciura as having outsized growth opportunities.
"Qualcomm has managed to boost its dividend for 19 consecutive years, which puts it in rarified company for a technology outfit, particularly one that is focused on semiconductors," Ciura wrote recently on Real Money. "Qualcomm's 1.6% dividend yield also puts it ahead of the broader market, so in concert with its earnings growth and dividend growth potential, it looks quite attractive."
When asked by Cramer where the auto industry is headed, Amon explained that assisted driving features will likely come to every vehicle in the future to make them safer and more enjoyable to drive. Fully autonomous vehicles will arrive in time, but it may take longer than more people expect to get there, he said.
Amon was also bullish on Qulacomm's growing IoT business, which now includes everything from robotics to smart power meters to retail tracking systems. Qualcomm has powerful ecosystems for both hardware and software in all of these areas, he said.
