We recently published a list of Billionaire Louis Bacon’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against other stock picks with huge upside potential.
Louis Moore Bacon is the founder, Chairman, and principal investment manager of Moore Capital Management, a global investment management firm that provides services to institutional and high-net-worth clients through diversified hedge funds and specialized funds that focus on global fixed-income and emerging markets. It was established in March 1989 and is headquartered in New York City with offices in London and Hong Kong. He holds an MBA in Finance from Columbia Business School and a BA in American Literature from Middlebury College. Bacon’s investment philosophy is based on risk management and capital preservation principles. His trading strategies are focused on macroeconomic trends and fundamental analysis of the markets.
Bacon emphasizes diversification, which allows him to invest across different geographies and asset classes. He is known for his contrarian investment style and takes positions against prevailing market sentiment. Moore Capital Management is a hedge fund with 4 clients and discretionary assets under management (AUM) of $33.20 billion, as reported in the firm’s Form ADV dated 19 November 2024. Their last reported 13F filing for Q4 2024 included $8.70 billion in managed 13F securities and a top 10 holdings concentration of 25.53%. He believes that there are opportunities to profit from mispricing that come with volatility or fear. Louis Moore Bacon is also the Founder and Co-Chair of The Moore Charitable Foundation, which was established in 1992 to support conservation-focused nonprofits dedicated to preserving land, water, and wildlife habitats. Bacon has received several awards in this regard, including the Theodore Roosevelt Conservation Partnership (TRCP) Lifetime Conservation Achievement Award and the Audubon Medal.
Our Methodology
To compile the list of billionaire Louis Bacon’s 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Moore Global Investments from Insider Monkey. From these filings, we checked each stock’s upside potential from CNN and ranked the stocks in ascending order of this upside potential. We have also added Moore Global Investments’ stake in each company and the hedge fund sentiment around each stock.
Note: All data was sourced on May 2.
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).
An aerial view of a bustling semiconductor production zone showcasing the company’s integrated circuits.
QUALCOMM Incorporated (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 Incorporated (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 Incorporated (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 Incorporated (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)
Overall, QCOM ranks 4th on our list of billionaire Louis Bacon’s stock picks with huge upside potential. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
