Qualcomm: Generative AI And Impressive Diversification Signal A New Era Of Growth


  • QCOM’s entry into the AI chips market seems promising, with MSFT endorsing the ARM-based Snapdragon X Elite CPU chips as the “fastest, most AI-ready PC ever built.”
  • This is on top of the promising “performance required for MSFT to make a big push for Windows on Arm,” while offering a direct competition to AAPL’s M3-powered MacBook.
  • While AMD and INTC are set to launch competing x86 AI chips, we believe that QCOM’s exclusive partnership with MSFT on the Recall feature may eventually be a key differentiator.
  • We maintain our previous conclusion that QCOM is in “a new phase of breakthrough,” thanks to its well diversified offerings across handset, automotive, broadband, AR/VR/ XR, and now, ARM-based AI CPUs.
  • While we are maintaining our Buy rating, it comes with the caveat that investors wait for a moderate retracement to the May 2024 support levels of $204s for an improved margin of safety.
New life Artificial intelligence concept glowing plant on dark background

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We previously covered QUALCOMM (NASDAQ:NASDAQ:QCOM) in March 2024, discussing why it remained a Buy, thanks to its growing diversification across different end markets with it also being a beneficiary of the ongoing generative AI boom.

With these opportunities likely to

Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM, INTC, AMD, MSFT, AAPL, AVGO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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