10 Undervalued Semiconductor Stocks to Buy According to Analysts

7. QUALCOMM, Inc. (NASDAQ:QCOM)

Upside Potential: 17%

Fwd. PE: 15.0

Next on our list is QUALCOMM, Inc. (NASDAQ:QCOM), a fabless semiconductor company specializing in software, semiconductor designs, patented intellectual property, development tools, and services for the wireless communication industry. The company boasts an extensive portfolio of patents crucial to 5G, 4G, CDMA, and other mobile communications standards, driving significant licensing revenue growth. With approximately 160,000 granted and pending patents across over 100 countries, QUALCOMM, Inc. (NASDAQ:QCOM) holds a strong intellectual property position.

QUALCOMM, Inc. (NASDAQ:QCOM) envisions a $900 billion addressable market and aims to be present in over 50 billion devices by 2030, as outlined in its November 2024 Investor Day presentation. While we cannot comment on the speculations surrounding QUALCOMM, Inc. (NASDAQ:QCOM)’s potential acquisition of Intel, it is noteworthy that the company ended the latest financial year with over $13 billion in cash and equivalents. This robust financial position, coupled with substantial annual cash flow, enables QUALCOMM, Inc. (NASDAQ:QCOM) to pursue strategic inorganic growth opportunities. The stock currently trades at a P/E ratio of 15.0x.

The company is slated to report its next quarterly earnings on February 5, 2025. Anticipating a strong quarter, an analyst from JP Morgan has already placed the stock on ‘Positive Catalyst Watch’. The analyst believes QUALCOMM, Inc. (NASDAQ:QCOM)’s smartphone market will benefit from government subsidies in China. Additionally, the company’s strategic partnership with Samsung is expected to drive further market share gains.