15 Best Hardware Stocks According to Hedge Funds

10. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Shareholders In Q1 2024: 78

QUALCOMM Incorporated (NASDAQ:QCOM) is an American semiconductor designer that makes products such as GPUs, CPUs, and neural processors. The average of 30 one year analyst share price targets for the firm is $206.62 and the shares are rated Buy on average. TD Cowen was optimistic for QUALCOMM Incorporated (NASDAQ:QCOM)’s future in June 2024 as it raised the firm’s share price target to $235 from $200. Sticking with a Buy rating, the firm shared that QUALCOMM Incorporated (NASDAQ:QCOM)’s decision to diversify its business to also include AI will prove to be a growth driver in the future.

For their first quarter of 2024 investments, 78 hedge funds tracked by Insider Monkey had bought a stake in QUALCOMM Incorporated (NASDAQ:QCOM). Among these, the one with the most valuable stake was David Goel and Paul Ferri’s Matrix Capital Management as it owned a $1.1 billion stake. QCOM ranked 7th on Goldman’s top hardware stocks to buy list.

QUALCOMM Incorporated (NASDAQ:QCOM)’s relatively stable business model which benefits from predictable contracts with smartphone manufacturers is also visible in its forward P/E of 18.18. This implies that investors are looking elsewhere for growth, and in its Q4 2023 investor letter, Madison Investments mentioned the stock and shared:

Qualcomm also reported a solid fourth fiscal quarter with better than expected results. The company guided the first quarter ahead of expectations despite headwinds from Samsung as the inventory headwinds dissipate. Qualcomm remains well positioned in the mobile handset market and should benefit as Artificial Intelligence moves to edge devices which could drive an upgrade cycle.