We recently compiled a list of the 10 Undervalued Chip Stocks Near 52-Week Lows. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other undervalued chip stocks.
Energy and EV stocks continue to be in focus as Donald Trump signs a bunch of executive orders that will have far-reaching impacts on many industries. He even revoked an executive order related to AI, though it addresses a matter that may not directly impact a company’s sales in the near term. AI stocks are going under the radar for a few weeks but with earnings season about to get into full gear, we may not have the same opportunities in a couple of weeks that we have now.
Many of the chip stocks continue to stay undervalued. The main reason is the lack of demand in the niche industries that these companies serve. But this demand will eventually shift at some point in 2025, which is what makes them so attractive to consider at this point.
We came up with 10 stocks that we believe are undervalued, near their 52-week lows, and present good investment opportunities. To come up with the 10 undervalued chip stocks that are near 52-week lows, we only considered stocks with a market cap of between $10 billion and $200 billion that hit their 52-week lows recently.
Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.
A technician testing the latest 5G device, demonstrating the company’s commitment to innovation.
QUALCOMM Incorporated (NASDAQ:QCOM)
Fresh off its court victory against ARM Holdings, Qualcomm stock is already up 7% YTD. Over the course of the last 6 months though, the stock has shed nearly 28% of its value, ending up quite close to its 52-week lows hit in February last year.
There are multiple reasons for this downturn. China is one, and with a semiconductor technology war continuing to stay in focus, that problem isn’t going away any time soon. The other one is Apple, a big client that intends to completely phase out the use of Qualcomm modems within the next 2 to 3 years.
These two problems have brought the stock close to its 52-week lows, giving investors an opportunity to load up on the stock. The worst seems to be priced in and with the new launches expected to add to the company’s topline in 2025, a recovery in the stock price could just be around the corner.
Overall QCOM ranks 5th on our list of the undervalued chip stocks near 52-week lows. 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.
