We recently compiled a list of the 15 Semiconductor Stocks Making Impressive Comeback From DeepSeek AI Dip. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other semiconductor stocks.
The semiconductor industry has always been a battleground for technological development, though lately, it has turned into a full-scale battle. The US and China are not only vying to outpace each other in the race to achieve AI superiority but are also actively trying to slow each other down.
The US for instance has placed a number of export restrictions on global firms selling semiconductor technologies to China. Many leading US companies have had to deal with declining China sales as a result of these restrictions. On the other hand, China is trying its best to come up with technologies that compete with those in the US, despite restrictions.
The emergence of DeepSeek AI at the end of January was a wake-up call for the Americans, with China building its latest AI model for a fraction of the cost that the US counterparts spend on their models. While the validity of these claims is debatable, it does show how far China has come when it comes to competing with the US.
As a result of the DeepSeek AI announcement, many semiconductor stocks took a big hit. Two weeks later, some of the stocks started recovering and investors started feeling comfortable with the thought of continued technological dominance by the US. We therefore decided to look at the semi-stocks that were making a comeback from the DeepSeek dip.
To come up with the list of 15 semiconductor stocks making a comeback from DeepSeek AI dip, we only considered stocks with a market cap of at least $10 billion that beat the S&P 500 in the last 5 days of trading.
A technician testing the latest 5G device, demonstrating the company’s commitment to innovation.
QUALCOMM Incorporated (NASDAQ:QCOM)
QUALCOMM Incorporated (NASDAQ:QCOM) is the developer and marketer of foundational technologies for the telecom industry. The company operates in Qualcomm Technology Licensing (QTL), Qualcomm CDMA Technologies (QCT), and Qualcomm Strategic Initiatives (QSI). The stock is up 1.67% in the last 5 trading days against the S&P 500’s 1.13% gains.
QUALCOMM Incorporated (NASDAQ:QCOM) was one of the few companies that responded to the DeepSeek AI developments officially. On the 11th of February, the company released a white paper detailing how it thinks the DeepSeek model could give rise to the demand for on-device AI chips. With cheaper and smaller models coming forth, on-device AI (as opposed to AI on the cloud) is becoming a reality and Qualcomm is set to benefit from it.
Exactly a year ago, QUALCOMM Incorporated (NASDAQ:QCOM) released a similar blog post talking about the emergence of on-device AI once the AI data center infrastructure was built. Thanks to DeepSeek, we now realize that making smaller models that are derived from bigger models and designed to excel at specific tasks is where the future is. The commercialization of AI will happen through these mini-modals and the demand for on-device inference will be met by companies like QUALCOMM Incorporated (NASDAQ:QCOM).
Overall QCOM ranks 15th on our list of the semiconductor stocks that are making impressive comeback from DeepSeek AI Dip. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
