Jim Cramer Suggests Selling QUALCOMM After it Goes Up

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the stocks Jim Cramer put under the spotlight. A caller inquired if they should continue to hold the stock given its low PE. Cramer replied:

“I think QUALCOMM could go up because… Skyworks reported a good number, which is highly unusual. Tomorrow, I think QUALCOMM goes up, and then I want you to [sell, sell, sell].”

QUALCOMM (NASDAQ:QCOM) develops wireless technologies and supplies chips and software for mobile, automotive, and IoT products. Moreover, the company licenses its patent portfolio and invests in early-stage companies across sectors like 5G, AI, and extended reality. Mairs & Power stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2025 investor letter:

“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 risk and potential of QCOM as an investment, our conviction lies in the belief that some 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 and that has 10,000% 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.