10 Best Quality Stocks to Buy According to Analysts

3. Qualcomm Inc. (NASDAQ:QCOM)

Average Upside Potential: 25.80%

Number of Hedge Fund Holders: 100

Qualcomm Inc. (NASDAQ:QCOM) creates semiconductors, software, and services related to wireless technology, and owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA mobile communications standards. Its chipsets provide the essential processing power and connectivity for these devices, enabling features like fast internet, high-quality cameras, and advanced multimedia capabilities.

The company is working with Microsoft to sell laptops with AI features. These laptops are available in over 60 retailers in 25 countries. Its Snapdragon 8 Gen 3 chip can help smartphones do complex AI tasks, making them like personal assistants. Microsoft recently said that its Surface Laptop and Surface Pro will have Qualcomm Inc. (NASDAQ:QCOM) chips, which can do AI tasks even without the internet.

It’s doing well in the smartphone market with the Snapdragon Gen 3 chip. Sales to Chinese companies increased by over 40% in the first half of this year. Microsoft is working with other companies to make new laptops with AI features, called Copilot+ PCs. These laptops will be available for as little as $700 and will be very powerful.

The company started working with Honeywell, a defense company, in late September. Honeywell is developing a new AI tool for their mobile devices that will use Qualcomm Inc. (NASDAQ:QCOM) chips. This tool will let workers and customers in stores and warehouses use their devices with voice, pictures, and barcodes.

Earlier in late August this year, it bought some parts of Sequans, a French company that makes chips for the Internet of Things (IoT). This will help the company offer better solutions for IoT devices that need to connect to the internet reliably and use less power. Sequans said this deal will give them more money to invest in their IoT business. Qualcomm Inc. (NASDAQ:QCOM) is strategically positioned for robust growth, driven by its cutting-edge AI technologies and expanding presence in the automotive and IoT sectors.

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.”