with us now is david traier ceo at new constructs give us your reaction to the latest numbers david this is not much of a surprise this is about revenue growth in this business it is a hard margin high return on invested capital business the question is what kind of growth can they sustain and what is a supercompetitive this next a great company not a great stock because the expectations baked into a current price are pretty high shery are you concerned about the broader industry and how that demand is not picking up especially in china david yeah it is becoming a more mature and crowded market mature in that the penetration is high there is not a lot of additional market share out there for free or competitive because you have more people competing for a diminishing amount of market growth is going to be harder to come by what our modeling shows is that the key number is 5 if they can do better than 5 revenue growth the stock looks attractive and she if they are not going to do better than that it looks expensive that is the breakeven point assuming margins and profitability stay the same assumed degradation in the margins but 5 longterm they have to be that if you want to believe the stock is cheap if they cannot beat 5 this might be a good time to exit haidi how formidable armies a free cash flow situation david i believe it is strong we are showing free cash flow at 5 billion and on average over the last five years around five lien  5 billion per year i like that great margins great return on capital strong free cash flow russian is can they continue to generate that level and row the business i think that is the tough part it is not often a stock can come to something that simple for qualcomm to have the wherewithal to continue to innovate in a way that can allow the business to grow at than 5 for a sustained  sustained period of time the answer for that question is for people a lot smarter than i am laughterhaidi we might be in trouble when you construct it like that this has been an interesting conundrum ross tech earnings  conundrum across tech earnings more investment is required for ai at the same time the monetization has not materialized and they are losing access to keep capital how do you separate where the good opportunities are david that is a great question it has been a long time since we have had to eat discerning about capital and expect companies to be discerning about how they allocate it the answer to that question is it is going to be hard and i think investors should be careful about where they allocate the best way to get a sense of whether or not companies will be able to continue to cash flow is to see whether or not they have done it the past alas think you want to do is find a company that has never been profitable and has done nothing but burn cash flow on the other hand with qualcomm great cash flow a much better chance at gang able to the 5 growth rate than other companies they can internally sustain and on a lot of this r  d to be successful in ai that companies with less cash flow cannot the stock is pretty expensive the market has given it credit the question is whether they can do better than what the market has given them credit for my models show the orchids give them credit for  show the markets give them credit for 5 i am  i do not track those numbers it will not be much more than it has been in the past the iphone launches have been increasingly less impressive the iphone is a business that is really successfully penetrated it target market not a lot of room for both left the new features are increasingly less impressive a lot of competition apple is a more similar business to qualcomm our model show it is a good business but it is more expensive as well i do not think you will find many stocks these days in the tech space that are not close to at or above fairly valued we have had to look in basic to aerials energy financials we see a lot of opportunities there everybody knows the sexy names nvidia and others are really expensive and he  and risky