6. Qualcomm Inc. (NASDAQ:QCOM)
Average Upside Potential: 20.63%
Number of Hedge Fund Holders: 100
Qualcomm Inc. (NASDAQ:QCOM) is a leading global technology company that designs and develops semiconductors and wireless technologies, best known for mobile chipsets, which are used in smartphones and other mobile devices worldwide. Its technologies power the connectivity of billions of devices and are essential for the development of the 5G network. In addition to mobile, it also provides solutions for automotive, IoT, and computing applications.
The company reported strong FQ3 2024 results, with revenue up 11.24% to $9.39 billion. Licensing revenue reached $1.4 billion. This quarter saw AI-powered PC chip launches and Networking Elite platform introduction. Partnerships with STMicroelectronics solidify its AI leadership.
Its AI-powered laptops are available in over 60 retailers in 25 countries. The Snapdragon 8 Gen 3 chip enables smartphones to perform complex AI tasks. Microsoft’s Surface Laptop and Surface Pro will feature Qualcomm chips, allowing for offline AI capabilities. The company’s smartphone market share in China increased by over 40% in H1 2024. Microsoft’s collaboration on Copilot+ PCs, starting at $700, will further expand AI-powered laptop options.
Qualcomm Inc. (NASDAQ:QCOM) acquired parts of Sequans, a French IoT chipmaker, in late August 2024. This move strengthens its IoT solutions, offering improved connectivity and power efficiency. Sequans also benefits from increased investment in its IoT business. Its strategic position is reinforced by its AI technologies and expansion in the automotive and IoT sectors. The company’s partnership with Honeywell, a defense company, involves developing an AI tool for mobile devices using Qualcomm Inc. (NASDAQ:QCOM) chips. This tool will enable voice, picture, and barcode-based interactions for workers and customers in stores and warehouses.
The company’s strategic acquisitions and partnerships in AI and IoT position it for continued growth and market leadership. Its innovative technologies and strong financial position make it a promising investment option.
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.”
