1. Qualcomm Inc. (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
Qualcomm Inc. (NASDAQ:QCOM) is one of the best quality stocks to buy according to hedge funds. On April 10, Reuters reported that Qualcomm and Snap Inc.’s (NYSE:SNAP) smart glasses unit, Specs, announced a multi-year deal to use Qualcomm chips for upcoming devices. The smart glasses, which are launching later this year, will use the Snapdragon XR processor platform. While the financial details were not disclosed, this deal builds on a years-long relationship where Qualcomm chips have powered previous generations of Snap’s developer-focused Spectacles.
The deal marks the first major move for the Specs unit since it was established by Snap in January. Snap formed a separate unit to provide more independence to the team and to compete with Meta’s Ray-Ban AI smart glasses. The parent company has stated that this separate unit also opens up room for external investment in the development of its smart glasses.
This announcement follows recent pressure from activist investor Irenic Capital Management, which disclosed a 2.5% interest in Snap’s Class A shares. Last week, the firm pushed Snap to cut costs and either spin off or shutter the Specs unit. Despite this pressure, the new agreement ensures Qualcomm will provide the processors for Snap’s upcoming AI-powered gadgets.
Qualcomm Inc. (NASDAQ:QCOM) develops and commercializes core technologies and products for mobile devices and other wireless products. It operates in three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives.
Snap Inc. (NYSE:SNAP) operates as a technology company in North America, Europe, and internationally. The company offers Snapchat, which is a visual messaging application with various tabs, such as camera, visual messaging, snap map, stories, and spotlight.
While we acknowledge the potential of QCOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QCOM and that has 100x upside potential, check out our report about the cheapest AI stock.
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