$30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley

10. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Investors  in Q1 2024: 78

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the biggest semiconductor designers in the world. It designs and sells a variety of chips such as application processors, GPUs, modems, and others for smartphones and other use cases. QUALCOMM Incorporated (NASDAQ:QCOM) also enjoys a key advantage in the signals and image processing industries. These products are key for humanoid robots, and QUALCOMM Incorporated (NASDAQ:QCOM)’s decades of experience in the semiconductor design industry provide it with key advantages when compared to other firms. Additionally, it also has key licensing agreements that force companies to only use its products in regions such as the US. This adds to QUALCOMM Incorporated (NASDAQ:QCOM)’s competitive moat to ensure it can generate not only direct sales revenue but also recurring licensing revenue.

Aristotle Capital Management mentioned QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2024 investor letter. Here is what the firm said:

“Qualcomm, a leading wireless communications technology company, was the largest contributor for the quarter. After a period of weaker global demand for smartphones (driven by a slowdown in China) and elevated channel inventory, demand from Chinese handset manufacturers accelerated 40% year‐over‐year. More importantly, in our opinion, Qualcomm continues to execute on a previously identified catalyst of shifting its business mix beyond smartphones. The company announced increased progress for its automotive and Internet of Things (IoT) solutions. Within auto, the increase in vehicle content has resulted in 35% year‐over‐year revenue growth, with a design win pipeline of ~$45 billion, keeping the company on track to achieving ~$4 billion in auto‐related revenues by 2026. In recent years, despite persistent threats of insourcing from large clients (most notably Apple), Qualcomm has been able to retain its high market share in handsets while simultaneously expanding in non‐smartphone devices. We believe this progress is a testament to Qualcomm’s history of high (and productive) R&D spending, resulting in technological superiority. We believe Qualcomm’s technologies will continue to benefit as the world stays on a path toward a proliferation of connectivity between varying devices and as AI applications extend from the cloud to on‐device.”