Unknown Billionaire Phill Gross’ 10 Stock Picks with Huge Upside Potential

6. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders as of Q4: 79

Adage Capital Management’s Equity Stake: $159.57 Million 

Upside Potential as of May 2: 38.22%

A prominent American multinational corporation, QUALCOMM Incorporated (NASDAQ:QCOM) is a key player in the wireless technology sector. Incorporated in Delaware, the company specializes in developing semiconductors, software, and services, and holds a significant portfolio of patents essential to global mobile communication standards such as 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA. Qualcomm’s influence in the mobile communications industry is substantial, as it supplies chips used in a wide range of smartphones, including flagship models produced by industry giants like Samsung and Apple.

In its fiscal second quarter, QUALCOMM Incorporated (NASDAQ:QCOM) delivered earnings that exceeded Wall Street expectations, showcasing its resilience and growing demand for its products. The company reported adjusted earnings per share of $2.85, beating analysts’ estimates of $2.82. Adjusted revenue reached $10.84 billion, also surpassing the forecasted $10.66 billion. A key driver of this performance was a 12% year-over-year increase in handset chip sales, which totaled $6.93 billion. This growth underscores Qualcomm’s strong position in the high-end smartphone market and the broader semiconductor industry. Overall, adjusted revenue rose 15% year-over-year, signaling a healthy upward trend across its business segments.

Looking ahead to the current quarter, QUALCOMM Incorporated (NASDAQ:QCOM) provided guidance that remains slightly ahead of expectations, projecting adjusted earnings per share of approximately $2.70 and revenue around $10.3 billion at the midpoint. Additionally, Qualcomm demonstrated a strong commitment to shareholder returns, spending $2.7 billion during the quarter—$1.7 billion on share repurchases and $938 million on dividend payments. This robust financial strategy reinforces the company’s stable foundation and ongoing focus on delivering long-term value to investors.

In the fourth quarter of 2024, Adage Capital Management significantly boosted its investment in QUALCOMM Incorporated (NASDAQ:QCOM), increasing its holdings to 1.04 million shares, demonstrating a rise from the 879,521 shares held in the previous quarter. This expansion brought the fund’s total stake in the company to an estimated $159.6 million, representing 0.27% of its portfolio. Additionally, data from Insider Monkey revealed that by the end of Q4 2024, 79 out of 1,009 hedge funds had positions in QUALCOMM, collectively holding nearly $3.28 billion in shares. This marked a significant increase from Q3, when only 74 hedge funds had investments in the company.