7. QUALCOMM Incorporated (NASDAQ:QCOM)
Forward P/E Ratio: 13.39
Earnings Growth This Year: 14.82%
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) specializes in developing and commercializing technologies for the wireless industry. It is known for its semiconductor chips including the Snapdragon processors. The company owns a vast portfolio of patents related to wireless technology. It also licenses these patents to other companies, allowing them to use the technology in their products.
In the fiscal first quarter of 2025, the company generated $11.7 billion in revenue, indicating a 17.6% increase year-over-year. The growth was notable as this marked the third consecutive quarter of double-digit revenue growth. This is a new record for quarterly sales for the company. The growth is driven by the QCT segment which generated $10.1 billion in revenue after growing 20% during the same time.
On February 7, Analyst Cody Acree from Benchmark Co. reiterated a Buy rating on the stock, with a price target of $240. Cody likes the substantial growth QUALCOMM Incorporated (NASDAQ:QCOM) is making in its smartphone, IoT (Internet of Things), and automotive segments. Moreover, the analyst also noted that the chipset sales surpassed guidance, with notable year-over-year revenue increases in key areas. This success is crucial for Qualcomm’s continued dominance in the semiconductor market. It is one of the best-undervalued stocks to invest in now.
Fidelity Dividend Growth Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:
“At the stock level, QUALCOMM Incorporated (NASDAQ:QCOM) was a major detractor, returning about -14% the past three months. The firm develops and manufactures semiconductors, software and services used in mobile phones, and other wireless technologies. On July 31, the company reported second-quarter results, and issued guidance for Q3, both of which solidly exceeded expectations. The stock slid, however, on concerns about a slow recovery for smartphones. Additionally, shares dipped this quarter in step with other semiconductor-related names.”
