If You’d Invested $1,000 in Qualcomm Stock 33 Years Ago, Here’s How Much You’d Have Today

33 years ago this month Qualcomm (QCOM 1.67%) stock has debuted. The company launched its initial public offering (IPO) to raise funding for research into code division multiple access technology, better known by its acronym CDMA.

Research in communications technology has paid off as Qualcomm has become the leading manufacturer of communications chipsets. This success generated massive wealth, especially for early investors in the semiconductor stock.

Qualcomm stock surge

A $1,000 investment in Qualcomm’s IPO would be worth $450,000 today. This figure assumes the reinvestment of dividends paid to investors. The company initiated the dividend in 2003 and has increased the annual total each year since then. Without including these dividends, the returns would leave an investor with just under $300,000 in Qualcomm stock.

QCOM total profitability level; data by YCharts.

The company’s continued innovations in mobile phone chips have driven this growth, placing it at the center of the burgeoning wireless industry. It was 1995 when Qualcomm finally released its CDMA standard and most mobile phone manufacturers quickly adopted it.

The stock surged after the company exited joint ventures with wireless companies to focus exclusively on chipsets in 1998.

Since then, Qualcomm has continued to innovate and add patents based on technical improvements. It has maintained its technological leadership, even helping to drive the shift to smartphones. This process is so successful that companies like Apple have repeatedly failed to replace Qualcomm’s chips with their own.

Furthermore, Qualcomm has prepared for a world where end users rely less on smartphones. It has innovated in the Internet of Things and automotive spaces to maintain its central role in the communications industry.

And even as the 5G upgrade cycle has run its course, Qualcomm has turned to artificial intelligence (AI) to give consumers and businesses yet another reason to upgrade their smartphones.

Ultimately, Qualcomm’s formula for success, which it began to outline during its IPO period, continues to drive its business today. His approach will likely continue to benefit both early and newer investors in the stock.