We recently compiled a list of the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other AI stocks.
Consumer Electronics Show (CES) 2025 revolved around AI. If not, it’s all that exhibitors could show. Talking about the highlight of the show, it was undoubtedly the keynote from Jensen Huang. The keynote included new products to advance gaming, autonomous vehicles, robotics, and agentic AI. Huang kicked off his talk by reflecting on the company’s 3-decade journey. Later on, he highlighted several significant advancements.
Takeaways From CEO Jensen Huang’s Keynote at CES 2025
As per Huang, AI has been advancing at an ‘incredible pace.’ It started with perception AI, meaning understanding images, words, and sounds. Then it came to generative AI, meaning creating text, images, and sound. And now, it’s the era of physical AI, meaning AI that can proceed, reason, plan, and act. The AI giant introduced GeForce RTX 50 Series GPUs, which are powered by Blackwell architecture. These GPUs provide significant improvements in AI-driven rendering, enhancing gaming and creative workflows. Furthermore, Huang unveiled “Cosmos,” which is a suite of foundational AI models capable of generating photorealistic video. The models have been designed in such a way that train robots and automated systems more efficiently, further advancing robotics and autonomous technologies.
The company and its partners have rolled out AI Blueprints for agentic AI, which includes PDF-to-podcast for efficient research and video search and summarization for assessing significant quantities of video and images — allowing developers to build, test, and run AI agents anywhere.
Agentic AI- Road Ahead in 2025
TechInformed interviewed experts from leading technology companies to explore predictions about Agentic AI. As per Steven Webb, UK chief technology and innovation officer, Capgemini, 2025 will see wider adoption of small language models (SLMs) and AI agents as an era of Agentic AI is fast approaching. Using multiple SLMs throughout a toolchain is expected to play a critical role in the AI evolution. This will include going beyond the already familiar LLMs such as GPT.
Furthermore, Alan Jacobson (chief data and analytics officer at Alteryx) believes that 2025 will see the rise of Gen AI agents used to solve problems. This is an approach that is made possible by reducing costs and improving the performance and speed of LLMs. Frameworks for orchestrating Agentic AI work are expected to emerge. Notably, a large percentage of use cases are expected to start to employ this approach.
Our Methodology
To list the 20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts, we conducted extensive research and sifted through numerous online rankings. After getting an initial list of 25-30 stocks, we chose the ones that were popular among hedge funds and that analysts saw upside to. Finally, the stocks were arranged in ascending order of their average upside potential, as of 14th January. We also mentioned hedge fund sentiments around each stock, as of Q3 2024.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A technician testing the latest 5G device, demonstrating the company’s commitment to innovation.
QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
Average Upside Potential: 25.95%
QUALCOMM Incorporated (NASDAQ:QCOM)’s Snapdragon processors are being optimized for AI workloads, and the company has been developing new products specifically tailored for AI applications in mobile and PC markets. QUALCOMM Incorporated (NASDAQ:QCOM)’s capability to integrate modem technology with powerful application processors in its Snapdragon platforms offers a unique advantage in providing comprehensive solutions for smartphones, PCs, and other devices. Notably, this integration ability is expected to become increasingly valuable as devices need more complex processing for AI and other advanced applications.
As generative AI accelerates demand for the company’s technology and becomes increasingly relevant throughout multiple industries, QUALCOMM Incorporated (NASDAQ:QCOM) remains well-placed to address a $900 billion opportunity (as per its own estimates) by 2030 across an expanding ecosystem of new customers and partners. TD Cowen expressed continued confidence in the company’s shares, maintaining a Buy rating and a price objective of $200.00. Its positive outlook stems from QUALCOMM Incorporated (NASDAQ:QCOM)’s capabilities in low-power processing, which it believes is expected to fuel growth in AI-driven embedded applications.
Also, Rosenblatt Securities highlighted QUALCOMM Incorporated (NASDAQ:QCOM)’s leadership in addressing diverse markets via energy-efficient processors, advanced connectivity, and AI capabilities. By fiscal 2029, the company aims a $4 billion in PC revenue, fueled by a proliferation of AI-enabled notebooks. The company expects that 90% of PCs would include AI features, with 100 million devices leveraging Copilot+ annually. Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said
“Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market.”
Overall QCOM ranks 19th on our list of the best AI stocks to buy according to analysts. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than AI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
