12 Best Affordable Stocks To Buy Right Now

Page 4 of 11

8. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E Ratio: 14.16

Earnings Growth This Year: 9.52%

Number of Hedge Fund Holders: 74 

QUALCOMM Incorporated (NASDAQ:QCOM) is a prominent technology company specializing in wireless communication technologies. It designs and manufactures integrated circuits and software for smartphones and smart devices, as well as advanced automotive technologies like automated driving systems. Its competitive edge originates from the numerous patents it holds in wireless technology.

The company’s smartphone chipset, the Snapdragon series is one of the most widely used in the industry. Its Snapdragon X75 modem is not only being used to power the new iPhone 16 models but is also the powerhouse of the generative AI-enabled Galaxy series. During the fiscal fourth quarter of 2024 alone, QUALCOMM Incorporated (NASDAQ:QCOM) generated $33.2 billion in QCT revenue, up 9% year-over-year. Within the QCT segment handset revenue contributed $6.1 billion mainly due to the quick adoption of the Snapdragon 8 Elite chipset.

Looking ahead, Samsung’s upcoming Galaxy S25 is expected to utilize the Snapdragon 8 Elite chipset, indicating continued growth for the company. Moreover, other manufacturers such as ASUS, Honor, OnePlus, and OPPO are also launching devices with this chipset. Management anticipates first-quarter fiscal 2025 revenue between $10.5 billion and $11.3 billion.

Madison Sustainable Equity Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:

“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.”

Page 4 of 11