This article first appeared on GuruFocus.
Qualcomm (NASDAQ:QCOM), the wireless and computing-chip designer, secured an early foothold in Google’s new premium-laptop push as Dell selected its Snapdragon X Elite for a flagship Googlebook. Shares slipped approximately 0.3% to $193.59.
Dell’s $1,199 XPS Googlebook pairs Snapdragon X Elite with a claimed battery life of up to 18 hours, giving Qualcomm a high-profile showcase for its Windows-rivaling PC ambitions. Google’s broader rollout stretches across Acer, Asus, Dell, HP and Lenovo, although the company has not disclosed how many of those machines will run Qualcomm silicon versus Intel processors. That leaves the real prize unresolved: whether Snapdragon can move from a showcase design into meaningful share across the wider Googlebook ecosystem.
The valuation already leaves investors little room for a quiet rollout. The chart puts Qualcomm’s $193.59 share price 10.32% above its $175.48 GF Value estimate, suggesting the market is already pricing in a healthy dose of future growth. One premium Dell win proves Snapdragon can compete for marquee designs, but the bigger catalyst would be repeat adoption across multiple manufacturers, stronger software compatibility and enough PC volume to make Qualcomm materially less dependent on smartphones.
