Arguably, technology stalwart Qualcomm Inc (NASDAQ:QCOM) represents one of the more understated enterprises within the broader innovation ecosystem. Since the beginning of this year, QCOM stock gained 2.5%, which is admittedly disappointing. During the same frame, the tech benchmark Nasdaq Composite index moved up nearly 7%. Still, traders are examining all angles to determine their next move.
Predominantly, Qualcomm's brand is inextricably tied to wireless tech, holding essential patents in 3G, 4G and now 5G. For many years, this leveraging of intellectual property (IP) has been a lucrative one, effectively forcing major smartphone manufacturers to pay Qualcomm licensing fees to sell their mobile communication products. So long as this paradigm remains intact, the tech giant benefits from royalties, turning the IP unit into a steady, high-margin annuity.
