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Why Bernstein Still Sees Value in Qualcomm (QCOM) Despite Smartphone Fears

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the 10 AI Stocks Analysts Are WatchingOn February 2, Bernstein SocGen Group analyst Stacy Rasgon lowered the price target on the stock to $200.00 (from $215.00) while maintaining an “Outperform” rating. Despite certain risks, the firm is constructively positive on the stock driven by a developing undervalued growth narrative.

Bernstein noted how the QCOM shares have lagged in recent months due to factors such as a general distaste of smartphones, AAPL roll off, and recent dynamics in the memory market. While the demand for smartphones has been fine, investors remain cautious about the forward outlook.

Despite these concerns, the firm believes QCOM may be more insulated due to its over-indexing to the higher-end segment, even though it is not necessarily immune to broader industry headwinds.

The firm further added that as Apple-related revenues diminish over time, QCOM’s strong product portfolio, growing adjacencies, and an emerging AI story will allow the company’s underlying strength to become more visible.

QCOM’s current valuation is at less than 13x forward earnings, representing an estimated 44% discount to the S&P 500 and a 56% discount to the Philadelphia Semiconductor Index (SOX). This implies potential value despite concerns about the company operating in out-of-favor market segments.

“We get that the stock plays in out-of-favor areas, numbers might be too high, etc. But we still think the story is worth a look as the narrative grows cleaner through the year. We lower our PT to $200 to reflect lower estimates, but maintain our Outperform rating.”

QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.

While we acknowledge the potential of QCOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QCOM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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