3. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E as of March 3: ~13.2x
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is engaged in the development and commercialization of foundational technologies for the wireless industry. The company’s healthy position in 5G technology offers a strong foundation for future growth. With 5G networks expanding globally, demand for QUALCOMM Incorporated (NASDAQ:QCOM)’s modem and RF front-end solutions is expected to remain strong. Its technological leadership can enable it to maintain a healthy market position amidst higher competition.
The automotive sector demonstrates a promising growth opportunity for QUALCOMM Incorporated (NASDAQ:QCOM). The higher integration of advanced connectivity and computing capabilities in vehicles remains in line with the company’s expertise. Furthermore, QUALCOMM Incorporated (NASDAQ:QCOM)’s efforts in edge AI technology can help open new opportunities in various markets, such as automotive, industrial IoT, and smart cities. Its ability to leverage the expertise throughout multiple segments can create synergies and fuel growth. Qualcomm Technologies, Inc. announced the next evolution of the Qualcomm AwareTM Platform, which is a cloud-based services platform enabling companies to add observability, monitoring, and location capabilities to intelligently connected devices throughout industries, such as logistics, retail, and energy, among others.
Overall, as the broader semiconductor industry witnesses growth due to 5G, AI, automotive and IoT, QUALCOMM Incorporated (NASDAQ:QCOM) remains well-placed to benefit from chip sales and licensing revenue. Madison Investments, an investment advisor, published its Q3 2024 investor letter. Here is what the fund said:
“Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market.”
