In this article we will take a look at the 5 best virtual reality stocks to buy. For a detailed analysis of these companies, go directly to the 10 Best Virtual Reality Stocks to Buy.
5. QUALCOMM Incorporated (NASDAQ: QCOM)
Number of Hedge Fund Holders: 85
QUALCOMM Incorporated (NASDAQ: QCOM) is a San Diego-based semiconductor manufacturing company. It was founded in 1985 and is placed fifth on our list of 10 best virtual reality stocks to buy. The company provides the chipsets used to power mobile devices that make use of these chipsets to run software for virtual reality applications. On April 29, the firm announced that it was partnering with VictoyXR to bring virtual reality headsets for use in an education program at a local college.
QUALCOMM Incorporated (NASDAQ: QCOM) recently announced fiscal quarter two revenue of close to $8 billion, an increase of 52% compared to the same period last year. It also posted earnings-per-share that beat market estimates by $0.23.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 4 million shares worth more than $609 million.
Alger Spectra Fund, in their Q1 2021 investor letter, mentioned QUALCOMM Incorporated (NASDAQ: QCOM). Here is what Alger Spectra Fund has to say about QUALCOMM Incorporated in their Q1 2021 investor letter:
“Long position Qualcomm Inc. were among the top detractors from performance. Qualcomm is a leading semiconductor company with strong positions in telecommunications end markets that position the company as a primary beneficiary of the innovative 5G network standard roll out. Qualcomm is acknowledged as having the best technology specs for 5G chip sets as evidenced by signing up all 75 major OEMs including Apple. Additionally, beyond handsets, Qualcomm has meaningful growth drivers, including the Internet of Things, automobiles, industrials and gaming that provide the company with potential for generating increased earnings.
While Qualcomm was a notable positive contributor to the portfolio’s absolute and relative returns in 2020, during the first quarter, the share price declined and the position detracted from performance. Market demand for chips has been strong; however, Qualcomm hasn’t been able to fully exploit the demand as it is capacity constrained. Expectations were high for Qualcomm and while the quarter generally exceeded consensus estimates and forward estimates did rise, the street was anticipating a stronger positive surprise. We believe the production capacity constraints should abate in the second half of this year.”
