10 AI Stocks in the Spotlight This Week

8. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 82

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks in the Spotlight This Week. On October 28, Citi raised the firm’s price target on the stock to $175 from $170 and kept a Neutral rating on the shares. The rating follows QCOM’s announcement of two products for artificial intelligence, along with a deal with Saudi Arabia’s startup Humain.

The company unveiled two artificial intelligence chips for data centers, on October 27, which will be available next year. The two new chips, known as AI200 and AI250, are designed for improved memory capacity and running AI applications, or inference.

Meanwhile, the deal with Humain will allow QCOM to supply Humain with up to 200 megawatts of capacity. This deal, the firm believes, represents a $1.0B in sales and 25c earnings per share opportunity for the company.

Discussing the two developments, the firm stated how QCOM’s recent rally has been due to a short squeeze but is doubtful whether the company will be successful in AI considering how it is “several years behind” AMD (AMD) and Nvidia (NVDA).

QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.