QUALCOMM Incorporated (NASDAQ:QCOM) is a standout among the most undervalued tech giants to buy according to hedge funds. With a ‘Buy’ rating from half of the analysts covering the stock, QUALCOMM has a median price target of $200, suggesting an upside potential of 14.28%. Fang Boon Foo, an analyst at DBS, has maintained a bullish outlook on the company with a ‘Buy’ rating and a price target in line with the consensus estimate.
On December 18, QUALCOMM announced the completion of its acquisition of Alphawave IP Group plc, a quarter ahead of schedule. This strategic move underscores the company’s focus on expanding its presence in the data center market. Tony Pialis, CEO and co-founder of Alphawave Semi, will now lead QUALCOMM’s data center business, bringing valuable expertise in high-speed connectivity technologies to enhance the company’s platforms and optimize performance for next-generation AI data centers.
Cristiano Amon, President and CEO of QUALCOMM, expressed his excitement about the acquisition, stating that Alphawave Semi’s technologies will strengthen their platforms and drive innovation in AI compute and connectivity solutions, particularly in data center applications.
Additionally, C.J. Muse from Cantor Fitzgerald raised the price target on QUALCOMM to $185 from $170 while maintaining a ‘Neutral’ rating. The firm’s confidence in the semiconductor index SOX to lead the market is driven by its outperformance compared to the S&P by approximately 30 points in CY25.
Headquartered in California, QUALCOMM operates across three segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing, and Qualcomm Strategic Initiatives. While the company shows promise as an investment, some AI stocks may offer greater upside potential with less downside risk. For investors seeking an undervalued AI stock with significant growth potential, consider exploring our report on the best short-term AI stock.
In conclusion, QUALCOMM’s recent acquisition and strong analyst ratings position it as a compelling investment opportunity in the tech sector. As the company continues to innovate and expand its presence in key markets, investors may find value in adding QUALCOMM to their portfolios.
