11 Cheap NASDAQ Stocks to Buy According to Hedge Funds

7. Qualcomm Inc. (NASDAQ:QCOM)

Forward P/E Ratio as of April 21: 11.75

Number of Hedge Fund Holders: 79

Qualcomm Inc. (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry worldwide. It has three segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI). It also provides development and other services and sells related products to the US government agencies and their contractors.

Qualcomm’s QCT segment achieved a record revenue of $10.1 billion in FQ1 2025, which represented a 20% year-over-year growth. QCT Handset revenues alone reached a record $7.6 billion, which was up 13% year-over-year due to higher volume and increased content in Android premium-tier smartphones. Qualcomm Inc. (NASDAQ:QCOM) is focused on using its advanced connectivity, computing, and edge AI technologies to further drive growth within QCT, particularly in the automotive and IoT sectors.

On March 11, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock while assigning a price target of $195. Buchalter focused on Qualcomm’s diversification strategy and expressed optimism in the company’s ability to expand its business beyond the traditional handset market. The firm thinks that Qualcomm is going in the right direction by using its low-power and connectivity-focused product portfolio to tap into high-growth opportunities within the IoT and Automotive sectors.

Nightview Capital highlighted Qualcomm as a core opportunity in the semiconductor supercycle and stated the following regarding Qualcomm Inc. (NASDAQ:QCOM) in its Q4 2024 investor letter:

“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)