Qualcomm (QCOM) and Meta Expand Metaverse Chip Partnership

QUALCOMM Incorporated QCOM and Meta Platforms, Inc. META have extended their long-standing seven-year association to manufacture new customized processors for the latter’s Quest virtual reality (VR) headsets.

Meta’s Quest and Quest 2 VR headsets work on Qualcomm’s Snapdragon chips. The new chips for VR headsets will operate on Qualcomm’s Snapdragon extended reality processors.

Meta is anticipated to spend more than $3 billion in the next 10 years on VR as it intends to work extensively to enhance the VR ecosystem.  The chips will be equipped with advanced capabilities to augment VR experiences.

Qualcomm aims to retain its leadership in the chipset market, 5G and mobile connectivity with various innovative product launch alongside many technological achievements. Users will be able to experience a seamless transition to superfast 5G network delivering low-power resilient multi-gigabit connectivity with the company’s best-in-class security. This, in turn, will provide the scalability and flexibility needed for fast and broad 5G adoption through quick commercialization of OEMs.

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Qualcomm has earlier inked an agreement with chipset manufacturer GlobalFoundries to manufacture advanced 5G multi-gigabit speed RF front-end products due to increased demand. The firms extended their RF collaboration to provide sturdy low-power semiconductor solutions with high cellular speeds, enhanced coverage and maximum power efficiency. These innovative offerings are specifically designed to power 5G-enabled connected devices with revolutionary coverage.

Such coveted contracts are likely to translate into incremental revenue growth for the company.

The stock has lost 11.1% in the past year compared with the industry’s decline of 15.9%. Qualcomm currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Globant S.A. GLOB is a better-ranked stock in the broader Zacks Computer and Technology  sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 0.8% over the past seven days.

Globant delivered a trailing four-quarter earnings surprise of 3.2%, on average. It has lost 18.4% in the past year.

Harmonic Inc. HLIT sports a Zacks Rank #1. The consensus estimate for current-year earnings has been revised upward by 17.1% over the past 30 days.
Harmonic delivered a trailing four-quarter earnings surprise of 79.3%, on average. It has gained 19.5% in the past year.

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