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Similar to Late-’90s Qualcomm By TipRanks


© Reuters. Universal Display Stock: Similar to Late-’90s Qualcomm

Technology investors paying too much attention to Amazon (NASDAQ:), Apple (NASDAQ:), Google (NASDAQ:) (GOOG), Microsoft (NASDAQ:), and Nvidia (NASDAQ:) have perhaps missed the shares of a small technology company ready to explode.

Universal Display (NASDAQ:) looks reminiscent of Qualcomm (NASDAQ:) back in the late 1990s. This was when Qualcomm shares skyrocketed from $5 to $87 in 1998 to 1999.

Universal Display has been certified for a product last week that improves safety, decreases workplace risks and promotes well-being.

“We are highly pleased to achieve ISO 45001:2018 certification, our third ISO certification, which demonstrates UDC’s company-wide engagement and commitment to maintaining a safe and healthy environment and community,” said Steven V. Abramson, president and CEO of Universal Display.

What OLED Has in Common with QCOM

Universal Display and Qualcomm are in different segments of the technology industry.

Universal Display designs and produces organic light-emitting devices and other materials. Universal Display also serves the display and lighting industry. Qualcomm designs and markets technologies for wireless devices as well as other products such network equipment, broadband gateway products and other connected devices around the world.

They share something in common. The two companies share a number of patents. This gives them steady royalty payments from the fast-growing industry that uses these patents.

Wall Street’s Take

Wall Street began taking notice of Qualcomm back in the late 1990s when its products became the standard components in cellular phones, and later on in smartphones.

Qualcomm has been among Wall Street’s top technology winners since 1999 after a spike.

Wall Street started to see Universal Display over the last five year, as its shares have risen 228.1% compared with a gain of 148.6% in Qualcomm shares.

This may not be the end, because Universal Display’s OLED technology, which is set to replace Liquid Crystal Display Technology (or LCD on flat panel displays), is poised for a major shift.

OLED enjoys a limited analyst following. The Moderate Buy consensus rating for OLED is based upon three Buys and one Sell. OLED has a median price target of $238.25 which is 24.1% potential upside.

A Bright Future

Universal Display has also entered agreements with several Asian panel manufacturers, including Sony Corporation (NYSE:), LG Electronics, and AU Optronics (AUOTY).

OLED is more efficient than LCDs. OLED boasts a lower profile and weight, greater contrast, better viewing angles, quicker video streaming, and lower manufacturing expenses.

Qualcomm is currently facing several challenges from regulators in China as well as its U.S. partner. It is now questioning whether it can sustain its explosive growth over the long term.

Bottom Line

Qualcomm and Universal Display are two broadly followed stocks, meaning Wall Street has factored in all public information about the two companies.

Over the long-term, however, Universal Display is a better bet than Qualcomm, as OLED appears to be an emerging market with plenty of growth ahead

Disclosure: At the time of publication, Panos Mourdoukousas owned shares of OLED, GOOG, AAPL, QCOM, and MSFT.

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