Is This the Most Overlooked AI Stock Trading Today?

• Qualcomm is yet pulling the close strings to marque a dent successful the AI market.

• Its maturation has picked up of late, and could beryllium capable to prolong its momentum.

• Qualcomm banal trades astatine an charismatic valuation, providing an opportunity.

• 10 stocks we similar amended than Qualcomm ›

The artificial quality (AI) megatrend has supercharged the semiconductor assemblage successful the past 3 years, and that's reflected successful the 148% summation clocked by the PHLX Semiconductor Sector scale during the period. A fig of companies person benefited from the booming request for the circumstantial types of high-end chips required to tally AI workloads successful information centers, and their income and net gains person resulted successful monolithic jumps successful their banal prices.

Qualcomm (NASDAQ: QCOM), however, has experienced acold little of that AI tailwind truthful far. Its shares are up conscionable 33% successful the past 3 years, substantially underperforming the semiconductor sector. A cardinal crushed wherefore that has been the lawsuit is due to the fact that of its reliance connected the slow-growing smartphone conception for a large chunk of its revenue.

Investors, however, would bash good to instrumentality a person look astatine this semiconductor institution close present arsenic AI is apt to springiness its concern a large boost.

Qualcomm released its fiscal 2025 fourth-quarter results connected Nov. 5 (for the 3 months ended Sept. 28). For the year, its gross roseate 13% to $44.1 billion, portion its non-GAAP net accrued by 18% to $12.03 per share. Of course, those gains were obscurity adjacent the phenomenal maturation rates that peers specified arsenic Nvidia, Broadcom, and others were clocking, but its top-line maturation was 4 percent points faster than successful the anterior year.

There is simply a beardown anticipation of Qualcomm's maturation accelerating. That's due to the fact that the company's Snapdragon smartphone processors are gaining much traction wrong the fast-growing generative AI smartphone space. CEO Cristiano Amon remarked connected the net telephone that its latest Snapdragon processor has been chosen for deployment by starring smartphone OEMs (original instrumentality manufacturers) successful China, specified arsenic Vivo, Xiaomi, OnePlus, and others.

What's more, Qualcomm is reportedly going to proviso 75% of the smartphone processors for Samsung's upcoming Galaxy S26 series. Throw successful the information that Qualcomm volition proceed to proviso modems to Apple for its 2026 iPhones, and determination is simply a bully accidental of its handset concern accelerating further.

After all, the generative AI smartphone marketplace is expected to timepiece 51% maturation successful shipments adjacent year, according to Gartner, arsenic compared to the 42% maturation projected for 2025. Qualcomm's narration with the starring names successful smartphones should alteration it to capitalize connected this market's accelerating growth, paving the mode for a bigger leap successful its apical and bottommost lines.