Arete Upgrades QUALCOMM (QCOM) Stock to Buy From Neutral

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 Best Semiconductor Stocks to Buy Right Now. On August 26, Arete upgraded the company’s stock to “Buy” from “Neutral,” increasing the price objective to $200 from the prior target of $172. As per the analyst, QUALCOMM Incorporated (NASDAQ:QCOM)’s momentum is expected to build starting in FY 2027, considering the emerging opportunities in advanced driver-assistance systems, personal AI devices, robotics, data centers, and industrial automation.

Arete Upgrades QUALCOMM (QCOM) Stock to Buy From Neutral

According to the firm, the stock’s valuation demonstrates that QUALCOMM Incorporated (NASDAQ:QCOM) is under distress, while the fundamentals remain healthy. The investors can reconsider the company, given that the management has been embarking on a transformation, opines Arete. In Q3 2025, QUALCOMM Incorporated (NASDAQ:QCOM) saw strong growth in QCT Automotive and IoT revenues, further validating the diversification strategy as well as confidence in achieving its long-term revenue targets. For Q4 2025, the company expects revenues in the range of $10.3 billion – $11.1 billion.

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.”

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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.