Qualcomm (QCOM) shares followed the technology sector sharply lower Tuesday, reversing Monday's rally and arriving back at Friday's closing price. Down roughly 24% from its early January all-time highs, CEO Cristiano Amon argued on CNBC's "Mad Money" Monday night that Wall Street is getting the stock all wrong. Amon told Jim Cramer — and the Club agrees — that investors are valuing shares based on the old, smartphone-heavy Qualcomm and failing to factor in the company's new and intense focus on revenue diversification. Those new areas include automotive tech, Internet of Things (IoT) and augmented and mixed reality. Advanced driver assistance In autos, Qualcomm's completed purchase of vehicle software maker Arriver bolsters the company's advanced driver-assistance systems. Amon sees ADAS in all classes of vehicles from premium to entry level, calling out customers such as BMW and General Motors . When pressed as to why customers might go for Qualcomm over the likes of Nvidia , also a Club name, and Mobileye, owned by Intel , Amon stressed Qualcomm's mobile-first DNA. In other words, Qualcomm is highly experience at cramming a whole lot of innovation into a small, energy-efficient form. That's key not only to the automotive industry where every watt saved on processor tech can help improve a vehicle's range, but also to other areas such as IoT, edge computing and augmented/mixed reality where devices may not be able to be plugged in at all times. The qualitative aspects of the opportunity are great — but as investors, we need some quantitative information. On this front, Amon highlighted a greater than $13 billion contracted backlog that will translate to $3.5 billion in sales over the next five years and grow to $8 billion within a decade. 5G cycle nowhere near over On next generation 5G mobile, Amon said that comparing this cycle to the 4G upgrade from 3G is wrong. From that perspective, the conclusion would be that the 5G cycle has already peaked. Amon says that couldn't be further from the truth as the company continues to grow its share in mobile devices. Consider: For Samsung's flagship Galaxy line — the number one competitor to the Apple 's iPhone — Amon said Qualcomm's share grew from roughly 40% to 50% in the S21 model to roughly 75% in the recently launched S22. Dividends to return cash All this good news begs the question, why isn't management being more aggressive with the buybacks at these low levels? The answer is strategic flexibility to take advantage of growth opportunities. While shares may be attractive at current levels roughly 13 times forward earnings, we shouldn't expect especially aggressive buyback activity. Amon said he wants to bolster dividends to bring value to shareholders. The company last month increased its quarterly cash dividend by 10% to 75 cents per share. Bottom line Bottom line: Qualcomm shares are being valued on the old smartphone-concentrated business model and not the new, diversified revenue streams. We believe investors who are focused more on where the company is headed and not where it's coming from will view current levels as fantastic longer-term opportunity. But as noted above, the expertise developed in mobile is certainly a reason to also believe in the bright future. That's why we called out Qualcomm on Tuesday's "Morning Meeting," saying that under $150 per share Qualcomm is "one of the great buys in our portfolio," referring to his Charitable Trust, whose stock holdings serve as the portfolio of the Club. While we like QCOM for the long-term, we have grown more negative around the overall stock market since the "Morning Meeting" following a hawkish speech Tuesday from Federal Reserve Governor Lael Brainard , who generally aligns more with the doves on the central bank's policymaking panel. We'll notify you of some moves for the portfolio shortly. — Correction: This article has been updated to reflect that Qualcomm CEO's name is spelled Cristiano Amon. (Jim Cramer's Charitable Trust is long QCOM, AAPL and NVDA. 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.