When a group of MIT and USC tech wizards launched Qualcomm (NASDAQ: QCOM) in the 1980s, many of the established telecom elite dismissed them as a band of dreamers and “radio geeks.” After all, one of “QUALity COMmunications'” first products back in the day was a satellite messaging service for long-haul truckers.

But when Qualcomm took the technology at the core of that messaging service – Code Division Multiple Access – and grew it into a rival standard for wireless communications, the industry had little choice but to take notice.  By creating a more efficient way for wireless users to share the same communication channel without interference, Qualcomm took a leadership role in the burgeoning industry.

Now the company finds itself sitting in the catbird seat of the global, next-generation wireless market. The company owns more than 7,000 wireless technology patents, which have been licensed by 145 equipment manufacturers around the world. Qualcomm also ranks first in sales of cellular baseband chipsets to mobile phone and tablet manufacturers.

Here are four reasons now is the time to take a closer look at Qualcomm shares:

1. Strong Cellular Baseband Market Growth

The global market for cellular baseband chipsets surged 20% last year to $13.2 billion, according to wireless research firm Strategy Analytics. Qualcomm’s strength in the major wireless standards (CDMA, W-CDMA, and LTE) put the company in a good competitive position, even though Intel (NASDAQ: INTC), Spredtrum (NASDAQ: SPRD) and Broadcom (NASDAQ: BRCM) have experienced growth, too.

2. The Chip Of Dreams

Qualcomm already has cashed in on the popularity of Android 3G smartphones and the CDMA-based Apple (NASDAQ: AAPL) iPhone 4 offered by Verizon (NYSE: VZ). Qualcomm’s super-fast, dual-core “Snapdragon” chipset also powers Hewlett-Packard’s (NYSE: HPQ) new TouchPad 4G, which AT&T (NYSE: T) announced on Tuesday will launch on its broadband network. HP is marketing the new tablet as an “iPad killer.”

3. The iPhone 5

When rumors about the upcoming iPhone 5 surfaced in the Wall Street Journal this week, insiders said Apple would choose Qualcomm’s chips instead of those an Intel subsidiary supplied for the iPhone 4. Facing tough challenges from HTC’s Thunderbolt 4G phone, Apple could use the newer, more robust Snapdragon chip (which supports all next-generation standards) to make one iPhone 5 that runs on multiple networks. That facilitates the task of manufacturing 25 million new iPhone 5s by Apple’s year-end target date.

4. Solid Fundamentals

At $56.52, Qualcomm is trading nearly 64% above its 52-week low of $34.51 this time last year. With a market cap of $94.36 billion, the company pays a dividend yield of 1.4% and has a price-to-earnings-growth of 1.11, indicating that the stock is fairly valued. Qualcomm has a very favorable debt position: $13.02 billion in cash compared to just $1.31 billion in debt. Analysts estimate Qualcomm’s earnings growth at 27.6% for the full year, compared to the S&P 500’s 17.3% and the industry average of just 5%.

As of this writing, Susan J. Aluise did not hold a position in any of the stocks named here.