12 Best Large Cap Stocks To Buy Now

3. Qualcomm Inc. (NASDAQ:QCOM)

Market Capitalization as of September 13: $186.67 billion

Number of Hedge Fund Holders: 100

Qualcomm Inc. (NASDAQ:QCOM) is a multinational corporation that creates semiconductors, software, and services related to wireless technology and owns patents critical to the 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA mobile communications standards, used in devices like smartphones, tablets, laptops, and IoT devices.

The company’s Snapdragon 8 Gen 3 Mobile Platform can power smartphones to process up to 10 billion parameters of GenAI models, making them great personal assistants. In June, Microsoft announced that its Surface Laptop and Surface Pro will be equipped with Qualcomm Inc. (NASDAQ:QCOM) chips, capable of performing various AI tasks without needing an internet connection.

The company is also a key partner for Microsoft in delivering Copilot+ PCs, available from major brands across 20 countries and 47 retailers. The retail presence will expand to over 60 retailers in 25 countries.

It maintains a strong position in the handset market, led by Snapdragon Gen 3. Revenues from Chinese OEMs surged by over 40% in the first half of fiscal 2024, indicating robust demand beyond its major customers. Microsoft is collaborating with OEMs on new Copilot+ PCs, including models priced as low as $700 without sacrificing performance, for 2025.

Overall, the company recorded $9.39 billion in revenues in FQ3 2024, up 11.24% year-over-year. The earnings per share were $2.33. Licensing business revenues were $1.3 billion. In automotive, it secured more than 10 new design wins.

Wall Street expects its revenue to grow by 10% in 2025 and earnings to rise by 13.10%. The company is strategically positioned for robust growth, driven by its cutting-edge AI technologies and expanding presence in the automotive and IoT sectors. It’s held by 100 hedge funds. The largest stake is held by Matrix Capital Management and is worth $1.99 billion.

O’keefe Stevens Advisory stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2024 investor letter:

“During the quarter, the A.I. rally broadened beyond the obvious players of Nvidia, AMD, and hyperscalers. QUALCOMM Incorporated (NASDAQ:QCOM), a long-standing investment, is gaining recognition for integrating artificial intelligence into mobile phones. Qualcomm’s A.I. on-device capabilities enable real-time language translation, improved voice recognition, and sophisticated imaging techniques as A.I. becomes more integral to mobile experiences. Qualcomm benefits by leading the market in providing robust, efficient, and versatile A.I. solutions. A.I. could be the first technology advancement in several years to accelerate the smartphone replacement cycle as users desire these advanced capabilities.”