5 Best Cheap Semiconductor Stocks to Buy and Hold

1. QUALCOMM, Incorporated (NASDAQ:QCOM)

PE Ratio as of August 29: 12.25

Number of Hedge Fund Holders: 71

On July 27, QUALCOMM Incorporated (NASDAQ:QCOM) announced market-beating results for the third quarter of its fiscal 2022. The company’s EPS of $2.96 beat expectations by $0.09, while its revenue amounted to $10.9 billion, up 36.69% year-over-year, and beating Wall Street estimates by $74.5 million.

Wall Street is bullish on QUALCOMM Incorporated (NASDAQ:QCOM), as on July 28, Edward Jones analyst Logan Purk upgraded QUALCOMM Incorporated (NASDAQ:QCOM) to ‘Buy’ from ‘Hold’. The analyst said that the stock’s current valuation has not priced in its industry-leading position in 5G technology. Also on July 28, Mizuho analyst Vijay Rakesh raised his price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $175 from $168 and maintained a ‘Buy’ rating on the shares.

On August 18, Bloomberg reported that QUALCOMM Incorporated (NASDAQ:QCOM) is working towards making a comeback in the $28 billion server industry. In March 2021, QUALCOMM Incorporated (NASDAQ:QCOM) acquired chip start-up NUVIA, and the company is reportedly now on the lookout for clients that are in need of NUVIA’s server chips. Amazon.com, Inc. (NASDAQ:AMZN) has agreed to test QUALCOMM Incorporated’s (NASDAQ:QCOM) server chip offerings.

At the close of Q2 2022, 71 hedge funds were long QUALCOMM Incorporated (NASDAQ:QCOM) with stakes worth $2.80 billion. Of those, Alkeon Capital Management was the most prominent stakeholder, with a $541 million in the stock.

You can also take a look at 10 Semiconductor Stocks With Growth Potential and 10 Semiconductor Stocks to Buy Under $50.

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