10 Best Very Cheap Stocks to Buy According to Billionaires

5) QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E as of March 28: ~13.1x

Number of Billionaire Investors: 19

Number of Hedge Fund Holders: 79

QUALCOMM Incorporated (NASDAQ:QCOM) is engaged in the development and commercialization of foundational technologies for the wireless industry. TD Cowen reiterated a “Buy” rating on the company’s stock, maintaining a price objective of $195.00. The firm’s analyst, Joshua Buchalter, exhibited confidence in the company’s ability to enhance business over and above its traditional handset market by using the intellectual property in compute and connectivity. QUALCOMM Incorporated (NASDAQ:QCOM)’s focus on leveraging the low-power and connectivity-focused product portfolio to tap high-growth opportunities in IoT and automotive sectors can fuel long-term growth. Overall, the reaffirmed price objective demonstrates the optimism and the expected benefits of the company’s diversification into new high-value markets.

While the broader AI PC market remains in the early stages, QUALCOMM Incorporated (NASDAQ:QCOM)’s expertise in low-power, high-performance computing can provide an edge in the emerging segment. Its Snapdragon processors can be well-suited for AI-enabled PCs requiring a balance of performance and energy efficiency. Also, QUALCOMM Incorporated (NASDAQ:QCOM)’s efforts in edge AI technology can open new opportunities across markets such as automotive, industrial IoT, and smart cities.

Nightview Capital, an investment management company that concentrates exclusively on publicly traded equity strategies, published its Q4 2024 investor letter. Here is what the fund said:

“Semiconductors are the unsung heroes of the modern economy, powering everything from AI and 5G to electric vehicles and renewable energy systems. Without them, innovation stalls. The semiconductor industry has entered a supercycle, driven by unprecedented demand across industries that rely on advanced computing. And while this notoriously boom and bust industry has seen cycles before we believe this cycle remains in relative infancy.

These advancements aren’t incremental. As AI systems scale, the need for cutting-edge semiconductors will only accelerate. We believe the companies at the forefront of this revolution are foundational to the next wave of global progress.

Qualcomm Inc. (QCOM): Core Opportunity: Qualcomm is transitioning beyond its traditional handset business, focusing on high-growth markets in Automotive and Internet of Things to drive future revenue streams. We have already seen this strategy flowing through the PnL and we are confident in the firm’s execution abilities going forward.

Competitive Advantage: Automotive Strength: Automotive revenue rose ~55% in FY 2024 to $2.9 billion, further supported by over 10 new design wins with global automakers for advanced driver-assistance systems (ADAS), connectivity, and digital cockpit solutions.

IoT Growth: IoT revenue reached $1.4 billion, reflecting steady traction in smart devices and industrial applications…” (Click here to read the full text)