Ben Gilbert: belief

Transcript context

…Somebody's law firm must just be making a fortune off of this industry. Right. The last one for the bear case for me is I really think that they finally poked the bear—talking about their customers—enough to make them want to actually do something about it. The goal for Qualcomm should have been make as much money as you can without pissing people off too much. I think over the last decade, they really upset Samsung, Apple, so many people that are starting to at least make their own radios or even consider systems on a chip. Now that there's very viable alternatives for silicon that people can either use in-house or competitors coming around at different angles, Qualcomm may lose their leverage to actually get a royalty out of each phone sold. Licensing business is going to be a juggernaut, smaller in revenue but higher in margin. But that is the bear case in the current silicon business. The bull case, maybe the lawsuit thing is actually a bull case. They manage to keep making more and more money and have been reaffirmed over and over again in a bunch of jurisdictions that they set their way out of these lawsuits, but they're able to keep making tons of money. The big bull case is you believe that this shift to automotive IoT and 5G RF frontend is real. For those keeping track at home, everything I'm about to say is a part of the chip segment that does that $37 billion in revenue. Automotive does $2 billion in revenue. That's a very real business. The RF frontend business that we were talking about, that does $4 billion a year in revenue. It's interesting, I rented a car here in Lisbon for the family. Of course it has data built in, 4G or 5G data built right in as like just about every new car these days.…

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