13 Cheap AI Stocks to Buy According to Analysts

10. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 79

Average Upside Potential: ~14.4%

Forward P/E as of May 12: ~12.4x

QUALCOMM Incorporated (NASDAQ:QCOM) is a critical player in the broader AI industry since it integrates and develops AI technologies throughout the core product lines, such as automotive, mobile, edge computing, and IoT. Bernstein analyst Stacy Rasgon maintained a “Buy” rating on the company’s stock, setting a price target of $185.00. The analyst’s rating is backed by a combination of factors demonstrating QUALCOMM Incorporated (NASDAQ:QCOM)’s recent performance and future prospects. As per the analyst, its Q2 2025 results were strong, with revenues and EPS exceeding market expectations, thanks to the strong performance in its QCT segment throughout sectors such as handsets, automotive, and IoT.

While there are worries related to the tariffs and macroeconomic uncertainties, the proactive approach of management and strategic buybacks exhibit confidence in QUALCOMM Incorporated (NASDAQ:QCOM)’s valuation, added Rasgon. During Q2 2025, the company returned $2.7 billion to stockholders, which includes $938 million, or $0.85 per share, of cash dividends and $1.7 billion of repurchases of 11 million shares. QUALCOMM Incorporated (NASDAQ:QCOM) established itself as a frontrunner in 5G technology and continues to invest significantly in AI capabilities, mainly for edge computing applications. Its emphasis on low-power, connected computing places it favourably to capitalize on the elevated demand trends for AI-enabled devices throughout various sectors. Overall, growth in the AI industry will drive growth for the company via increasing demand for its AI-optimized chips and platforms throughout edge devices, vehicles, and smartphones.

Mairs & Power, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said:

“The Information Technology sector underweight had the largest relative impact on returns during the quarter. Only one of the Fund’s technology holdings posted a positive quarterly return – QUALCOMM Incorporated (NASDAQ:QCOM) – making this a somewhat hollow outperformance. Qualcomm is a “value tech” company which has enviable cash flows but we believe has been consistently underappreciated in the market for its technology licensing business, which has frequently been targeted for legal action by some of its major customers. However, we believe it continues to prove its best-in-class technology and, despite companies attempting to circumvent Qualcomm, we continue to see a long-term position in the wireless technology space for the company.”