5. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 78
QUALCOMM Incorporated (NASDAQ:QCOM) is a leading technology company that develops backend technologies for various wireless technology industries. The company operates through three main segments including Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). The QSI segment invests in early-stage tech companies including 5G, artificial intelligence, and automotive technologies.
QUALCOMM Incorporated (NASDAQ:QCOM) has introduced its Snapdragon Ride platform that provides advanced solutions for automated driving and advanced driver assistance systems (ADAS). Its connectivity and digital cockpit solutions connect cars to their environment and the cloud to create a unique user experience and allow automated driving.
The company posted a successful third quarter of 2024, with revenue growing across the board. The overall revenue of the company grew by 11% year-over-year to reach $9.4 billion. Along with the revenue, the earnings of the company also grew significantly. The earnings before tax and earnings per share both grew 25% year-over-year to reach $3 billion and $2.33 billion, respectively.
The most notable financial improvement for the company came from its QCT segment, which grew 12% year-over-year to reach $8.1 billion. Growth in this segment was on the back of strong performance in both IoT and automotive sectors.
The strong position of QUALCOMM Incorporated (NASDAQ:QCOM) in the autonomous vehicle segment can be estimated by the fact that it delivered the 4th consecutive quarter of record QCT automotive revenues. The automotive revenue of $811 million was up 87% year-over-year, reflecting growth in new vehicle launches and increased supply of integrated technology solutions to the automotive industry.
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the best autonomous vehicle stocks to buy, we say this because it was held by 78 hedge funds in Q1 2024, with total stakes worth $4.60 billion. Renaissance Technologies is the top shareholder of the company, with a position worth $218.46 million. It is also cheap at current levels because it is trading at 16 times its forward earnings, a 28% discount to its sector. Moreover, 39 analysts have a consensus Buy opinion on the stock, with their 12-month median price target of $212.5 presenting an upside of 29% from current levels.
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.
