We recently published a list of Billionaire Mario Gabelli’s 10 Large-Cap 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 billionaire Mario Gabelli’s large-cap stock picks with huge upside potential.
Mario Gabelli needs no introduction, having risen to become one of the most successful money managers on Wall Street, backed by a research-driven equity investment style. Having founded Gamco Investors, formerly Gabelli Asset Management Company, in 1977, the investment firm has grown to over $32 billion in assets under management with a portfolio spread over 800 stocks.
Therefore, GAMCO is one of the most diversified hedge funds, offering exposure to some of the biggest and fastest-growing market segments. Over the years, Gabelli has relied on a value investment strategy that focuses on stocks trading below their fair value. In return, he looks for catalysts that could cause the stock’s value to rise substantially.
Some of the catalysts the fund manager often looks for include the sale or spinoff of a business. Mergers, industry consolidation, or regulatory changes also act as tailwinds in driving share value. The value investment strategy has been the catalyst behind GAMCO investors achieving impressive annualized returns of 16.3% since inception.
READ ALSO: Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential and Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential.
Likewise, GAMCO Investors is well positioned to capitalize on emerging opportunities in the overall stock market, pulling back. Valuation levels have pulled back significantly in the aftermath of the stock market coming under pressure amid the US tariff-fueled trade war.
The announcement of President Donald Trump’s “Liberation Day” tariffs caused a significant upheaval in the stock and bond markets, resulting in the loss of trillions of dollars in investor wealth. While the administration temporarily suspended most reciprocal tariffs on April 9 for a period of 90 days, the looming threat of a global trade war poses risks to economic expansion. It is likely to shift capital flows in the equity markets.
Both policymakers and market players are also wary of the potential for a financial “mishap,” stemming from erratic movements in the U.S. Treasury market. Federal Reserve Chair Jerome Powell warned that current tariffs are “significantly larger than expected,” adding that “the same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
The tariffs imposed by U.S. President Donald Trump and other countries’ reactions have created uncertainty for investors’ holdings. Technology stocks have been the hardest hit amid the tariff wars after years of blockbuster gains fueled by the artificial intelligence frenzy.
Given the market downturns, an anticipated increase in consumer costs, and a heightened chance of a recession as a result of these tariffs, it is indeed challenging to envision what a victory would entail for Trump, who claimed in 2018 that “trade wars are beneficial and straightforward to win!”
On the other hand, now would be the best time to capitalize on the significant pullbacks in the equity markets. With most stocks trading at discounted valuations beyond historical averages, billionaire Mario Gabelli’s 10 large-cap stock picks with huge upside potential could offer a way out of the downturn.
Our Methodology
We combed Gamco Investors SEC Q4 2024 13F filings to identify Billionaire Mario Gabelli’s 10 Large-Cap Stock Picks with Huge Upside Potential. We then settled on stocks with more than 30% upside potential based on analysts’ ratings and analyzed why the stocks stand out, as solid value investments well poised to generate significant long-term value. The list is sorted in ascending order according to analysts’ projected upside potential.
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)
Gamco Investors Equity Stake: $1.72 Million
Market Capitalization as of May 5: $152.09 Billion
Stock Upside Potential as of May 5: 33.15%
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is a technology company that develops and commercializes foundational technologies for the wireless industry worldwide. It develops and manufactures chips for wireless telecommunications, including mobile phones, computers, tablets, and cars. It is one of Billionaire Mario Gabelli’s 10 large-cap stock picks with tremendous upside potential as a key supplier of chips such as smartphone modems and processors.
QUALCOMM Incorporated (NASDAQ:QCOM) delivered fiscal second quarter 2025 results that topped analysts’ estimates as it increasingly benefited from chip sales that showed strong growth. Revenue came in at $10.84 billion against $10.66 billion expected as earnings per share rose to $2.85 against $2.82 expected. While handset chip sales surged 12% to $6.93 billion, Qualcomm is increasingly working on selling more chips for cars through its automotive business. Sales in the segment were up 59% to $959 million.
QUALCOMM Incorporated (NASDAQ:QCOM) is also working on selling more chips for virtual reality headsets and more for Windows PCs under its Internet of Things. The push is part of a diversification strategy and a continued focus on areas likely to drive long-term value. Likewise, the stock sentiments received a boost on the chip giant, reiterating that it does not expect any material impact from tariffs. Consequently, Susquehanna has reiterated a Buy rating on the stock amid the favorable tailwinds, even cutting the price target to $190 from $210.
Overall, QCOM ranks 8th on our list of billionaire Mario Gabelli’s large-cap 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 greater promise for delivering higher 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 this 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.
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