5) QUALCOMM Incorporated (NASDAQ:QCOM)
Average Upside Potential: ~24.3%
Forward P/E as of February 28: ~13.5x
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is engaged in the development and commercialization of foundational technologies for the wireless industry. The company’s patent portfolio continues to strengthen its wide economic moat. Also, its intellectual property and R&D expertise in wireless technologies are some of the factors that offer the company a competitive edge. QUALCOMM Incorporated (NASDAQ:QCOM)’s healthy position in 5G technology offers a strong foundation for future growth. With 5G networks expanding globally, demand for the company’s modem and RF front-end solutions is projected to remain strong.
Its technological leadership in this area can enable it to maintain a robust market position despite higher competition. QUALCOMM Incorporated (NASDAQ:QCOM)’s Snapdragon processors appear to be well-suited for AI-enabled PCs requiring a balance of performance and energy efficiency. In the smartphone market, the company’s focus on AI capabilities in its mobile processors can help maintain a healthy position. With AI becoming important in mobile devices, QUALCOMM, Incorporated (NASDAQ:QCOM)’s ability to offer integrated solutions combining 5G connectivity with advanced AI processing can act as a critical differentiator.
Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:
“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.”
