10 Best Automation Stocks to Buy Now

6) QUALCOMM Incorporated (NASDAQ:QCOM)

Average Upside Potential: 30.71%

QUALCOMM Incorporated (NASDAQ:QCOM) carries out operations as a multinational semiconductor and telecommunications equipment company. It is engaged in developing and delivering digital wireless communications products and services.

The Qualcomm Al Engine is the application of computer vision in Al. This optimizes tasks such as object detection, facial recognition, etc. Notably, smartphones, loT devices, automotive systems, and augmented reality (AR) are some of the examples where such technologies are used. QUALCOMM Incorporated (NASDAQ:QCOM) has been exploiting catalysts for shifting its business mix.

This was evident from its announcement about increased progress in automotive and Internet of Things (loT) solutions. The company’s stock is being helped by 2 main factors. Firstly, there have been early signs of recovery in the smartphone market. Secondly, there is increased optimism that the generative Al trend should help increase smartphone sales.

For 4Q 2024, the company expects revenues in the range of $9.5 billion – $10.3 billion and GAAP diluted EPS of $2.38 – $2.58. Wall Street analysts believe that QUALCOMM Incorporated (NASDAQ:QCOM)’s automotive business has seen good momentum, with semiconductors playing a greater role in the transportation industry amidst trends like electrification and autonomous driving.

Analysts at Bank of America initiated the coverage on shares of QUALCOMM Incorporated (NASDAQ:QCOM). The brokerage raised its price objective from $180.00 to $245.00, giving a “Buy” rating on 31^st May.

According to Insider Monkey’s data, 78 hedge funds held stakes in QUALCOMM Incorporated (NASDAQ:QCOM) at the end of 1Q 2024.

O’keefe Stevens Advisory, an investment advisory firm, published its second-quarter 2024 investor letter. Here is what the fund said:

“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.”