10 Best Semiconductor Stocks to Buy According to Billionaires

5. QUALCOMM Inc. (NASDAQ:QCOM)

Number of Billionaire Investors: 19

Billionaire Holdings: $2.6 Billion

Number of Hedge Fund Holders: 79

QUALCOMM Inc. (NASDAQ:QCOM) is a global leader in semiconductor technology, specializing in wireless communications. The company plays a crucial role in advancing 5G technology, supplying chipsets and system-on-chip solutions for mobile devices, automotive applications, and the Internet of Things (IoT). Its Snapdragon processors are widely used across smartphones and connected devices.

In early February, the company provided its Q2 2025 revenue outlook, projecting between $10.2 billion and $11.0 billion in revenue, with adjusted EPS expected to be between $2.70 and $2.90. The company also reaffirmed its goal of reaching $22 billion in non-handset revenues by 2029.

QUALCOMM Inc. (NASDAQ:QCOM) also reported strong Q1 2025 earnings, which exceeded market expectations. Total revenue rose 17% year-over-year to $11.7 billion, while net income reached $3.8 billion, reflecting a solid net margin of 27.3%. The company’s semiconductor division, Qualcomm CDMA Technologies (QCT), performed well across all key markets. Additionally, the Qualcomm Technology Licensing (QTL) segment posted a 20% revenue increase. Automotive and IoT segments also showed significant growth, with revenues increasing 61% and 36% year-over-year, respectively.

Despite these strong results, QUALCOMM faces potential challenges, including a slowdown in the smartphone market and licensing uncertainties with Huawei. However, analysts remain optimistic about the stock’s future. The median 12-month price target stands at $192, suggesting a potential 23% upside.