In a recent program on CNBC, Jim Lebenthal from the CNBC Investment Committee shared his insights on why he is bullish on Qualcomm Inc (NASDAQ:QCOM) despite his reservations about the cellphone market. Lebenthal pointed out that Qualcomm’s earnings revisions are showing slight upward trends, with the potential for further increases. He believes that these revisions will not be driven by the cellphone market, as the much-anticipated super upcycle in that sector has not materialized. Instead, Lebenthal sees growth opportunities for Qualcomm in the automotive and internet of things (IoT) sectors, which are expected to drive earnings higher. Additionally, he highlighted the role of IoT in the data center buildout, further supporting Qualcomm’s growth prospects.
The Mairs & Power Balanced Fund also expressed optimism about Qualcomm in its Q1 2025 investor letter. The fund noted that Qualcomm is a “value tech” company with strong cash flows, despite facing legal challenges in its technology licensing business. The fund believes that Qualcomm’s technology leadership and long-term position in the wireless technology space make it a compelling investment opportunity.
While Qualcomm presents promising investment potential, some investors may prefer to explore other opportunities in the AI sector. Certain AI stocks are seen as offering higher returns with limited downside risk. For those interested in AI investments, a free report on the best short-term AI stock is available for consideration.
In conclusion, Qualcomm’s growth prospects in the automotive and IoT sectors, combined with its technology leadership in wireless technology, make it an attractive investment opportunity. However, investors may also want to consider other AI stocks for potentially higher returns. For more insights on AI stocks and investment opportunities, readers can explore the 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article was originally published on Insider Monkey.
