5 Semiconductor Stocks to Watch as Uncertainty Grows

3. QUALCOMM, Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 71

Though QUALCOMM, Incorporated (NASDAQ:QCOM) derives a major chunk of its revenue from smartphones, the semiconductor giant also makes chips for end markets that have minimal consumer exposure, such as server, IoT, enterprise, cloud, and 5G among others. QUALCOMM Incorporated (NASDAQ:QCOM) may suffer from demand weakness in smartphones, but the company’s other markets, primarily 5G and server, can help it weather a potential slowdown.

This September, QUALCOMM, Incorporated (NASDAQ:QCOM) announced its partnership with Meta Platforms (NASDAQ:META) by which it will develop customized semiconductors for the Quest VR headsets. On August 18, QUALCOMM Incorporated (NASDAQ:QCOM) announced that it is seeking server clients for its new server chips. Amazon.com, Inc. (NASDAQ:AMZN) is among the company’s first server clients to install and test its server chips.

This July, Mizuho analyst Vijay Rakesh upped his price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $175 from $168 and reiterated a Buy rating on the shares.

At the end of the second quarter of 2022, 71 hedge funds held stakes in QUALCOMM Incorporated (NASDAQ:QCOM) worth $2.80 billion. As of June 30, Alkeon Capital Management owns 4,23 million shares of QUALCOMM Incorporated (NASDAQ:QCOM) and is the largest shareholder in the company.