We recently published a list of 10 AI News You Can’t Miss. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against other AI news you can’t miss.
The AI stocks selloff that started following the launch of DeepSeek is still impacting the US markets. Aswath Damodaran, NYU Stern School of Business professor of finance, said in a recent program on CNBC that he believes innovation in AI technology like DeepSeek and new models would “commoditize” AI products and could result in lower spending.
“In my view, what it does is reduce the total size of the segment of the AI market that needs high-power chips and immense amounts of data. Whether deep seek is a fake or whether it’s going to pass by, what it opens people’s eyes to is that not all AI products and services need these incredibly powerful chips and huge amounts of data and huge data centers. You can get there with much cheaper devices. I think for many companies, when they look at the AI products and services they have to develop, they don’t need this high-powered stuff. They don’t need to spend the tens of billions of dollars up front. So, I think that’s the real worry you have to have.”
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For this article, we picked 10 stocks trending based on the latest news. For each company we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
QUALCOMM Incorporated (NASDAQ:QCOM)
Number Of Hedge Fund Investors: 79
Olivier Blanchard from The Futurum Group in a latest program on Schwab Network made the case for QUALCOMM Incorporated (NASDAQ:QCOM).
“One that seems consistently under-indexed is Qualcomm. First of all, they’re kind of everywhere. They have a dominant position in the premium Android market, an increasingly dominant position in automotive as well—and that’s not just EVs, but what we call software-defined vehicles, basically smart vehicles. Qualcomm is in a really unique position. They have extremely low-power, power-efficient AI chips that go into phones, PCs, cars, and also IoT—specifically commercial IoT, where a lot of intelligence is done locally on-device instead of being pushed to the cloud. That makes it much cheaper, delivers a better ROI, and offers better security. I think we’re going to see a resurgence in 2025 in the commercial or industrial IoT segments, and companies like Qualcomm and Broadcom will be right there with that bump.”
Qualcomm shares have wavered amid reports that Apple plans to move modem production in-house. However, QCOM bulls believe the company can thrive without Apple. Qualcomm had a $10 billion annual run rate for non-handset revenue as it reported $8.3 billion in revenue for FY24. The company expects the AI PC market to reach $4 billion in sales by FY29, with only a 12% market share. QCOM management said during a latest earnings call that it aims to reach $22 billion in non-handset revenues by 2029.
Fidelity Dividend Growth Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:
“At the stock level, QUALCOMM Incorporated (NASDAQ:QCOM) was a major detractor, returning about -14% the past three months. The firm develops and manufactures semiconductors, software and services used in mobile phones, and other wireless technologies. On July 31, the company reported second-quarter results, and issued guidance for Q3, both of which solidly exceeded expectations. The stock slid, however, on concerns about a slow recovery for smartphones. Additionally, shares dipped this quarter in step with other semiconductor-related names.”
Overall, QCOM ranks 7th on our list of AI news you can’t miss. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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