Qualcomm (NASDAQ: QCOM) and Texas Instruments (NASDAQ: TXN) once competed against each other in mobile application processors and baseband modems. Qualcomm eventually won that battle, and TI quit both markets to produce cheaper analog and embedded chips for a wide variety of industries.
The two chipmakers aren't direct competitors anymore, but both stocks have outperformed the Philadelphia Semiconductor Index's 25% gain this year. Qualcomm is up 34% for the year, while TI is up 26%. Let's see which chipmaker is a better long-term pick at current prices.