10 Best Undervalued Stocks to Buy According to Billionaires

3. QUALCOMM Inc. (NASDAQ:QCOM)

Number of Billionaire Investors: 19; Holdings: $2.6 Billion

Number of Hedge Fund Holders: 79

Forward P/E: 13.5

QUALCOMM Inc. (NASDAQ:QCOM) is a leading global semiconductor company specializing in wireless telecommunications technology. The company is a pioneer in 5G, providing key chipsets and system-on-chip solutions for mobile devices, automotive applications, and IoT ecosystems. QUALCOMM’s Snapdragon processors power a vast range of smartphones and connected devices.

QUALCOMM Inc. (NASDAQ:QCOM) reported impressive Q1 2025 results on February 5, surpassing expectations. The company achieved a 17% rise in total revenue to $11.7 billion and net income of $3.8 billion, with a robust net margin of 27.3%. Its semiconductor unit, Qualcomm CDMA Technologies (QCT), saw strong performance across all major markets and the Qualcomm Technology Licensing (QTL) segment also thrived, with a 20% revenue increase.

Although there were concerns over a potential slowdown in smartphone industry growth, analysts broadly remained positive on the stock after the results. Bernstein analyst Stacy Rasgon reiterated a Buy rating on the company with a price target of $215. In addition, TD Cowen analyst Joshua Buchalter also affirmed a Buy rating on QUALCOMM Inc. (NASDAQ:QCOM) with a price target of $195, indicating around 25% upside potential.