We recently compiled a list of the 11 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other AI stocks.

Advancements in AI have revolutionized many industries, from healthcare and education to finance and entertainment, offering unparalleled efficiency, precision, and the ability to handle complex tasks at a scale previously unimaginable.

On the positive side, AI can streamline operations, improve decision-making, and even solve pressing global issues like climate change by analyzing large datasets. However, these advancements also come with significant risks. The rapid growth of AI technology has raised concerns about privacy, job displacement, and the potential misuse of AI systems in surveillance and defense.

READ ALSO: 12 AI News and Ratings Investors Probably Missed and Jim Cramer Discussed 10 Stocks That Can Do Well in December.

OpenAI’s Push into Defense Raises Concerns Among Employees

OpenAI is teaming up with Anduril Industries to enhance anti-drone systems using its AI technology, as per Bloomberg. This partnership aims to improve the detection and response to unmanned aerial threats. OpenAI is also expanding its role in the defense sector, including collaborations with the U.S. Air Force and hiring former Pentagon officials. The deal reflects the growing U.S.-China competition in military AI development, with Anduril seeing it as vital for addressing global air defense gaps. The partnership also signals increasing AI involvement in defense, following similar moves by other tech companies.

However, OpenAI employees have raised concerns about the company’s partnership with Anduril Industries, seeking more transparency from leadership. Internal messages viewed by The Washington Post revealed worries that the AI technology could be used beyond defensive applications against drone attacks, potentially targeting human-piloted aircraft or being deployed for other military purposes. Some employees expressed discomfort with collaborating with a weapons manufacturer, fearing damage to OpenAI’s reputation. Others noted that even defensive uses of AI could contribute to its militarization, drawing parallels to the fictional Skynet system from The Terminator, which was originally designed for defense.

Apart from OpenAI, there are several other startups that are working in the military and defense sectors. One of them includes DEFCON AI, a company focused on next-generation modeling, simulation, and analysis (MS&A) for military logistics. The company focuses on creating efficient, reliable systems that help address disruptions in logistics and supply chains, ensuring timely delivery of personnel, equipment, and cargo during critical situations.

Its approach combines AI-driven intelligent agents and advanced modeling to help leaders test and prepare for contested logistics scenarios. In August, DEFCON raised $44 million in seed funding. The round was led by Bessemer Venture Partners, with participation from Fifth Growth Fund and Red Cell Partners. With its strong leadership team, including retired military officials, the company is set to address the growing need for intelligent military technology in the face of increasing global competition.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.

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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 74

QUALCOMM Incorporated (NASDAQ:QCOM) focuses on wireless technology and operates globally. Its AI initiatives are driven by investments in emerging technologies and companies, along with developing AI-powered solutions for mobile devices, automotive systems, and IoT applications.

Melius Research began coverage of QUALCOMM (NASDAQ:QCOM) with a Hold rating and a $180 price target, as reported by The Fly on December 9. While acknowledging Qualcomm’s innovation in chipsets and favorable valuation, the firm anticipates challenges over the next few years. It noted that growing demand for powerful chips in smartphones, PCs, and autos driven by AI applications may take time to offset the impact of losing Apple as a major customer and broader smartphone market weakness.

Overall, QCOM ranks 7th on our list of  trending AI stocks on latest news and ratings. 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. 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.

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