3 Chip Stocks to Note Now: Intel’s Recon Investment, Broadcom Goes 5G, Qualcomm’s Royalty Woes
Intel Corp. (NASDAQ:INTC): Intel’s venture capital unit has made a “significant” investment in Recon Instruments, a developer of heads-up display (HUD) products, though the terms remain undisclosed. Recon goes after niche markets like cyclists and skiers, unlike Google’s Glass. An Intel spokesman also stated that, “We’re actively working on multiple opportunities across wearables.” In addition, concerns have emerged that Intel may be unable to launch its Web TV service by the company’s stated goal of the year’s end.
Broadcom (NASDAQ:BRCM): Broadcom announced that its new chips could be labeled with the term 5G. They are compatible with Wi-Fi and Bluetooth standards as well as working with Miracast, Passpoint, and Beamforming. Eventually, the chips may see use in PCs, but for now Broadcom remains focused on the automotive sector.
Qualcomm (NASDAQ:QCOM): Qualcomm may see slowing growth numbers on its sales as the smartphone boom shifts toward emerging markets and away from domestic sales, affecting products such as the Samsung Galaxy S4. This would cause royalties to fall as the average selling prices of the phones drop. Qualcomm had reported that the price of devices sold with a royalty for the company had increased in the March quarter of this year to around $230 as opposed to the $217 value for the December quarter.