5G chipset

Companies who want 5G will have to buy a product that uses Qualcomm chips.

Until other companies invent a comparable competing product, Qualcomm will probably remain in control of its segment of the chip market. Moreover, Research and Markets analysts estimate the compound annual growth rate (CAGR) for the global 5G chipset market will average almost 88% through 2025!

Last quarter's numbers show no indication of that earnings surge. However, next year, when 5G devices become widely available, analysts predict that profit increase will grow to more than 63%. Also, given the forecasted CAGR, Qualcomm appears positioned to keep that up for the next few years. Additionally, investors can buy this income stream for about 19 times forward earnings.

It remains possible that Apple or a different company will invent a chipset comparable to Qualcomm's. At that point, growth may slow. Still, with Qualcomm as the dominant company, its stock should benefit for years to come.