Investors looking to benefit from the growing adoption of AI smartphones should take note of Qualcomm (QCOM) as a potential investment opportunity. Despite a recent drop from its 52-week high, Qualcomm’s stock has seen healthy gains this year and could be poised for a rebound when it releases its fiscal 2024 third-quarter results on July 31.
Qualcomm, a semiconductor company that generates a significant portion of its revenue from selling smartphone chips, could see a boost in its financial performance due to the improving demand for smartphones. Market research firm IDC reported that smartphone sales have been on the rise in 2024, with a particular focus on AI-enabled smartphones. Qualcomm, with its strong presence in the smartphone processor market, stands to benefit from this trend, especially with the growing adoption of AI smartphones in China.
Analysts are optimistic about Qualcomm’s upcoming earnings report, with expectations of revenue growth and earnings per share in line with the company’s guidance. However, the surge in AI smartphone shipments last quarter could potentially lead to better-than-expected results for Qualcomm, setting the stage for continued growth in the long term.
Looking ahead, IDC’s forecast of a significant increase in AI smartphone shipments over the next few years suggests a bright future for Qualcomm. With the stock currently trading at a discount compared to tech stocks in the Nasdaq 100 index, now may be a good time for investors to consider buying Qualcomm shares before the potential uptick in performance.
In conclusion, Qualcomm’s strong position in the AI smartphone market and the positive outlook for the industry make it an attractive investment opportunity for investors looking to capitalize on this growing trend.
