Billionaire Louis Bacon’s 10 Stock Picks with Huge Upside Potential

4. Qualcomm Inc. (NASDAQ:QCOM)

Moore Global Investments’ Stake: $92.17 million

Number of Hedge Fund Holders: 79

Average Upside Potential as of May 2: 36.82%

Qualcomm Inc. (NASDAQ:QCOM) engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives.

In Q2 2025, the combined revenues from the Automotive and IoT segments of the company reached $2.56 billion. In particular, Automotive made $959 million while IoT made $1.6 billion, which was a year-over-year increase of 59% and 27%, respectively. This growth outpaced the 12% growth in the handset business within QCT. JPMorgan has reiterated an Overweight rating on the stock with a $185 price target due to the company’s push to diversify its streams away from smartphone revenues.

The growth in Automotive is driven by the demand for Qualcomm’s Snapdragon Digital Chassis, which is being integrated into new vehicle launches. During Q2, Qualcomm Inc. (NASDAQ:QCOM) secured 30 new automotive designs, including 5 ADAS programs, and saw 14 commercial vehicle launches utilizing the company’s platforms. Qualcomm aims for $8 billion in automotive revenue by 2029.

Nightview Capital highlighted Qualcomm as a core opportunity in the semiconductor supercycle and stated the following regarding Qualcomm Inc. (NASDAQ:QCOM) in its Q4 2024 investor letter:

“Semiconductors are the unsung heroes of the modern economy, powering everything from AI and 5G to electric vehicles and renewable energy systems. Without them, innovation stalls. The semiconductor industry has entered a supercycle, driven by unprecedented demand across industries that rely on advanced computing. And while this notoriously boom and bust industry has seen cycles before we believe this cycle remains in relative infancy.

These advancements aren’t incremental. As AI systems scale, the need for cutting-edge semiconductors will only accelerate. We believe the companies at the forefront of this revolution are foundational to the next wave of global progress.

Qualcomm Inc. (QCOM): Core Opportunity: Qualcomm is transitioning beyond its traditional handset business, focusing on high-growth markets in Automotive and Internet of Things to drive future revenue streams. We have already seen this strategy flowing through the PnL and we are confident in the firm’s execution abilities going forward.

Competitive Advantage: Automotive Strength: Automotive revenue rose ~55% in FY 2024 to $2.9 billion, further supported by over 10 new design wins with global automakers for advanced driver-assistance systems (ADAS), connectivity, and digital cockpit solutions.

IoT Growth: IoT revenue reached $1.4 billion, reflecting steady traction in smart devices and industrial applications…” (Click here to read the full text)