Our read here is that both companies will ultimately end up winners. We are long QCOM but have no idea on the time frame for this investment and it has yet to make us any money. This Bloomberg piece is one of the better pieces written on this complex situation. Qualcomm is at the center of a secular revolution in semiconductors and we are highly confident in the long-term future. First there were personal computers, next the Internet, then smart phones, and the next leg up will be automobiles of all types; traditional, battery, and autonomous. Semiconductors are at the heart of everything and QCOM is one of the best long-term plays. If they are successful in purchasing NXPI, they will be the largest company providing automotive chips. We also are long Cypress, Texas Instruments and SMH semiconductor ETF for its automotive exposure.
