Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch

2. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 100

Acknowledging investors’ love for QUALCOMM Incorporated (NASDAQ:QCOM), Cramer said that he is not a fan.

“Well, People love QUALCOMM… I mean, I can tell you that I think that they’re overreaching, talking about buying Intel. I also think that they’re on the wrong side of the trade in that lawsuit with Arm. I’m not a fan.”

QUALCOMM (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry, including integrated circuits, software, and licensing of intellectual property, while also investing in early-stage companies across various sectors. Arm Holdings initiated a lawsuit against Qualcomm in 2022, following Qualcomm’s acquisition of Nuvia.

The dispute centers on Qualcomm’s failure to negotiate a new licensing agreement, which has significant implications for the future of its chip designs. Arm claims that the technology intended for Microsoft’s Copilot+ laptops is directly derived from Nuvia’s chip architecture. Additionally, Bloomberg News recently reported that Arm is planning to cancel an architectural license agreement that permits Qualcomm to utilize Arm’s intellectual property for chip design.

On September 5, Reuters reported that QUALCOMM (NASDAQ:QCOM) has been exploring the potential acquisition of parts of Intel’s design business. As per the report, the company is interested in enhancing its product portfolio by acquiring various segments of Intel, which is currently facing challenges in generating cash and is looking to divest certain business units. Sources familiar with the situation indicate that Qualcomm executives are particularly interested in Intel’s client PC design business, although they are considering other design units as well. However, the feasibility and specifics of such acquisitions have not been confirmed by either company.