10 Best Augmented Reality Stocks To Buy Now

7. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 100

QUALCOMM Incorporated (NASDAQ:QCOM) is a leading American telecom equipment and semiconductor company based in California. The company operates across various high-growth markets, including smartphones and autonomous vehicles, supplying chips to major companies like Samsung, Huawei, and BMW. QUALCOMM’s Snapdragon augmented reality technology is a key player in powering extended reality, augmented reality, virtual reality, and immersive experiences.

Additionally, QUALCOMM Incorporated (NASDAQ:QCOM)’s handset business remains robust, driven by the strong performance of its third-generation Snapdragon platforms designed for high-end smartphones. Revenues from Chinese OEMs surged by over 40% in the first half of fiscal 2024, indicating strong demand beyond major customers.

JPMorgan Chase & Co. recently updated its outlook on QCOM, raising its price target to $235 from $185 and maintaining an Overweight rating on the stock. The forecast anticipates low double-digit revenue growth in handsets (excluding Apple), an approximately 30% compound annual growth rate (CAGR) in the automotive sector, and over 26% CAGR in the Internet of Things (IoT) sector. Additionally, PC-related revenue is expected to grow from $300 million in FY24E to $3.7 billion in FY27E.

As of the second quarter, 100 hedge funds held positions in the company, with stakes totaling $8.82 billion. Matrix Capital Management is the largest shareholder as of the quarter, with a position valued at $1.99 billion.

O’keefe Stevens Advisory stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2024 investor letter:

“During the quarter, the A.I. rally broadened beyond the obvious players of Nvidia, AMD, and hyperscalers. QUALCOMM Incorporated (NASDAQ:QCOM), a long-standing investment, is gaining recognition for integrating artificial intelligence into mobile phones. Qualcomm’s A.I. on-device capabilities enable real-time language translation, improved voice recognition, and sophisticated imaging techniques as A.I. becomes more integral to mobile experiences. Qualcomm benefits by leading the market in providing robust, efficient, and versatile A.I. solutions. A.I. could be the first technology advancement in several years to accelerate the smartphone replacement cycle as users desire these advanced capabilities.”