Preview: Author Bram de Haas will publish below. Qualcomm is DIYVI - Do-it Yourself Value Investor - Idea. Qualcomm’s (QCOM) underperformance continues to frustrate value investors. Its target company, NXP Semiconductors (NXPI) is doing better, up 5% in the quarter compared to Qualcomm’s -7.7% loss. Markets are pricing in the risk of the smartphone processor and modem chip giant will lose against government trade authorities and Apple Inc. (AAPL). The thought that Apple could get a favorable ruling against Qualcomm is frightening. It would owe less past and future royalties. Other companies would pay less and Qualcomm could be forced to negotiate lower rates. Being a value investor, I am betting that the courts will recognize Qualcomm’s valuable IP and reasonable royalty rates. As investors wait patiently, other chip suppliers get to ride higher. Intel (INTC) is up 15% due mostly to the Coffee Lake CPU release in the computer market. Intel also benefits from Apple using its slower modem. Clearly, consumers lose out when Apple is not using a Qualcomm solution and paying what it needs to get the technology in its phones. Nvidia (NVDA) is about to break past $200 a share. Apple is up 6.3 percent in the quarter and will likely trade at new highs once it releases its iPhone X. Valuation Per finbox.io, eight users created fair value models that imply a fair value of $53 (5 percent upside) on QCOM stock. Click here for free access to Qualcomm Price Target builder. SimplyWallSt has a bearish intrinsic value on Qualcomm, with a $42.90 target based on future cash flows. This is due partly to expectations revenue growth will lag the industry: Qualcomm is one of the 15 – 20 DIY Top Holdings. Heavily concentrated in biotechnology (up 27% YTD) and technology (up 26% YTD), the portfolio also has 30% cash to take advantage of deep value ideas. Applied Optoelectronics (AAOI), PayPal (PYPL), Ubiquiti Networks (UBNT), Himax Technologies (HIMX), and Cognex (CGNX) are past and present ideas.Subscribeto DIYVI.