We recently compiled a list of the 11 AI News and Ratings You Should Not Miss. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other AI stocks.
Investors are eagerly waiting for the election results in the United States as they seek to adjust their money making strategies in light of the latest developments. Investment advisory Wedbush Securities released an investor note in this regard recently, noting that a historic victory for Republican candidate Donald Trump and a potential Republican sweep would result in a very bullish market reaction for technology and be beneficial for artificial intelligence. Analysts at the advisory forecast a very robust bullish market reaction from a Trump win, with Big Tech front and center. The analysts further cautioned that China tariffs and a harsher stance on Beijing from Trump will need to play out over the coming year for its impact on the supply chain/chips and Big Tech. However, Wedbush expected a strong AI focus out of the gates from Trump for US Big Tech players, Khan out at the FTC, and Musk’s big bet on Trump being a home run for his company.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Wedbush analysts projected that a Trump win would be worth around $50 per share for Tesla. They also underlined that Washington would roll out new AI initiatives under the Trump administration that would benefit big tech players, with the defense department also boosting companies that work closely on AI adoption in the military. The bullish commentary comes as big tech firms grapple with ballooning CapEx on the one hand and investor pressures for short-term results on the other. Mark Zuckerberg said during the earnings call of his company that building out the infrastructure was maybe not what investors wanted to hear in the near term, but the opportunities here were really big, and his firm was going to continue investing significantly in this.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in 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: 100
QUALCOMM Incorporated (NASDAQ:QCOM) develops and sells foundational technologies for the wireless industry. The company is expected to post fourth quarter earnings later today. Analysts expect the company to report earnings per share of $2.57, representing a 27% increase, and a 14.5% increase in its revenue to $9.93 billion. The firm has made efforts in recent months to diversify towards the automotive and AI sectors from the smartphone market. Analysts expect gains from these diversification efforts to be evident in the results. However, they also expect the softness in the smartphone market to continue. JPMorgan analyst Samik Chatterjee has said that Qualcomm faces specific challenges in relation to lapping loss of revenue to Huawei, while adoption of both AI PCs as well as AI Smartphones remain at a modest pace for now.
Overall QCOM ranks 8th on our list of the AI news and ratings you shouldn’t miss. 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 more promising than 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 is originally published at Insider Monkey.