Qualcomm

Qualcomm’s most durable moat is its standard‑essential patent portfolio embedded in 3G/4G/5G specifications, monetized via QTL with structurally high margins (around 71% EBT in Q3 FY25).

That toll‑like licensing cash flow funds heavy R&D to sustain a second moat in QCT: integrated platforms spanning application processors, modems, RF front‑end, and AI NPUs at premium performance per watt.

Switching costs are meaningful for OEMs that rely on Qualcomm’s silicon, software stacks, certification, global carrier qualification and time‑to‑market. Efficient scale also applies to the RF millimeter‑wave layer where only a few players can serve at global scale.

The 2025 legal outcome versus Arm eliminated a key threat to Qualcomm’s custom CPU Oryon roadmap, strengthening the compute moat for PCs and edge devices.

Moat erosion vectors include Apple’s internal modem program, persistent competition from MediaTek in Android, and regulatory scrutiny of licensing practices; however, long‑dated Apple supply through 2026 and strong Android flagship traction mitigate near‑term risk.