Investing Club: We're buying more of this tech stock, a day after starting the position

Published Thu, Feb 17 202211:27 AM EST

We are buying an additional 100 shares of Qualcomm (QCOM) at roughly $169.68 on Thursday, matching our initial purchase of the stock a day earlier. Following the buy, the Charitable Trust will own 200 shares of Qualcomm, increasing its weighting in the portfolio to 0.85% from 0.42%. We're making our next buy in Qualcomm as we are looking to do a small amount of buying into Thursday's Russia-Ukraine related weakness. Remember, we purposely kept our initial buy Wednesday small on the expectation that the market will be volatile in the coming days and weeks due to the uncertainty in Europe. However, as the market gets rocky, we think Qualcomm is a good stock to buy into weakness because it's a great company diversifying its business to fast-growing end markets as well as a stock trading at a very reasonable price to earnings multiple (only 14x forward) and paying a solid dividend. We like Qualcomm for its terrific handset business, which is benefitting from the upgrade cycle to 5G phones, which have more content than 4G, as well as market share gains from its Android customers in China and Europe. The company makes wireless technology used in mobile devices. The auto sector is another exciting opportunity for Qualcomm's processors, with revenues expected to grow to $3.5 billion in the next five years thanks in part to huge relationships with General Motors , BMW, and Renault. Qualcomm is also coming off a terrific quarter with revenues beating estimates by $250 million and adjusted earnings-per-share topping expectations by $0.22. The forward outlook was much stronger than anticipated, suggesting that the market is still slow to catch up to how well the business is performing. (Jim Cramer's Charitable Trust is long QCOM. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Qualcomm's Snapdragon 888 chip will be used in premium Android devices that could cost over $1000.

Qualcomm

We are buying an additional 100 shares of Qualcomm (QCOM) at roughly $169.68 on Thursday, matching our initial purchase of the stock a day earlier.