8 Cheap Growth Stocks to Buy According to Analysts

6. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E Ratio: 16.53

Earnings Growth This Year: 19.60% 

Analyst Upside Potential: 27.28% 

While investors have been focused on the potential of AI servers they may have overlooked the potential of artificial intelligence in smartphones. QUALCOMM Incorporated (NASDAQ:QCOM) is capitalizing on making AI-capable chips for smartphones. It is a multinational corporation that develops integrated circuits and software for various technology devices. It has a significant contribution in enabling phones to connect to 4G and 5G technology.

Recently, Apple released its first AI-ready iPhone with the help of QUALCOMM Incorporated’s (NASDAQ:QCOM) Snapdragon 8 Gen 3 chip. Although the maker of the iPhone intends to move away from QUALCOMM. However, they have extended their patent license agreement to the first quarter of 2027, indicating the importance of the company in the smartphone industry.

Moreover, on September 24, Reuters reported that QUALCOMM Incorporated (NASDAQ:QCOM) has approached Intel for a potential buyout. If it goes through this will not only be one of the biggest mergers and acquisitions in the industry but will unleash a series of new products. The unification of Snapdragon chips with Intel’s PC and server chips will result in a semiconductor powerhouse.

The company recently released its fiscal third quarter results indicating revenue of $9.4 billion, which was towards the higher end of its guidance. The revenue growth was on the back of strong performance across the board, with QCT segment and QTL segment revenue growing 12% and 3% year-over-year respectively.

QUALCOMM Incorporated (NASDAQ:QCOM) is one of our cheap growth stocks to buy according to analysts. It is trading at a 31% discount to its sector, with earnings expected to grow 19.6% during the year.

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.”