Device Boom Drives Stocks: Qualcomm, STMicroelectronics, and Oura

A recent surge in device launches from major companies like Apple (AAPL), Meta Platforms (META), and SpaceX is driving a boom in consumer hardware. However, as Josh Baylin, editor of the True Innovations Report at Stansberry Research, points out, the real money often goes to suppliers, patent holders, and subscription services attached to these devices.

Baylin notes that early adopters buy first, mass adoption follows, and then behavior shifts permanently. He cites the iPod as an example, where the device itself mattered less than what it killed, CD binders and disc changers. The dollars previously spent on physical music were redirected towards streaming services.

Baylin believes AI is running a similar play, moving from developers to everyday users faster than PCs or smartphones did. He recommends investing in Qualcomm (QCOM), STMicroelectronics (STM), and Oura (OURA) as these companies are positioned against this behavioral shift rather than relying on individual product successes.

Qualcomm has been the intellectual property backbone of cellular since 3G, providing high-margin revenue through royalties that scale with device counts. Despite management lowering its share of Apple's latest iPhone launch estimate and a 20% year-over-year decline in handset revenue, Baylin argues that Qualcomm will benefit from increased personal device adoption.

STMicroelectronics co-designs the radio-frequency front-end modules for Starlink's phased-array antennas, with hundreds of chips per terminal. With volumes potentially doubling within two years and a target of $3 billion in LEO revenue by 2030, STMicroelectronics is well-positioned to benefit from this trend.

Oura, which went public on September 21, has a unique business model where hardware sales are accompanied by software subscription services. With an attach rate of 94% and 12-month retention near 85%, Oura's valuation rests heavily on its ability to maintain these renewal rates.