In this article, we'll examine whether QUALCOMM Incorporated (NASDAQ:QCOM) is the best unstoppable artificial intelligence (AI) stock to buy. We will also take a closer look at developments in the artificial intelligence industry. To see more unstoppable AI stocks, check out our free report on 7 Unstoppable Artificial Intelligence (AI) Stocks to Buy Now
The Bull Case for AI
On April 20, Matt Bryson, Wedbush enterprise hardware analyst, appeared in an interview. Yahoo Finance where he discussed the major players in the AI industry and how falling interest rates may not have an impact on the tech wave. Shares of tech stocks including Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel Corporation (NASDAQ:INTC) have fallen 15% over the past 30 days, followed by a 10% decline in the Philadelphia Semiconductor Index despite recent highs. has happened . Despite his return to industry activity, Bryson has a bullish view of artificial intelligence. Bryson highlighted that the fuel in AI is backed by chip stocks and cloud services providers, including NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices Inc. (NASDAQ:AMD) and picking up Amazon.com Inc (NASDAQ:AMZN). Despite the pullback, major tech stocks, especially chipmakers, will continue to invest in AI in 2025 and after strong growth results, he added. Bryson suggests that higher interest rates will certainly weigh on consumer spending in the long run, affecting several stocks such as major chipmakers. He then went on to say that interest rates may have little or no impact on the fundamental landscape of technology and AI. Data center operators like Microsoft Corporation (NASDAQ: MSFT ) and Amazon.com Inc (NASDAQ: AMZN ) will continue to bet on developing AI applications, according to Bryson.
Bryson believes NVIDIA Corporation's (NASDAQ:NVDA) Blackwell, a next-generation semiconductor product, will have a positive impact on the industry. While he believes that AI hardware and software companies will define the parameters of success for the industry, he claims that it is currently uncertain to predict technological progress in AI. Bryson also has a bullish view on NVIDIA Corp. (NASDAQ:NVDA) followed by Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) and talked about the possibility of companies like Microsoft Corp. (NASDAQ:MSFT).
Amazon.com Inc (NASDAQ:AMZN) is developing its semiconductor products, replacing Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)'s position in the market. Bryson said that while he expects the industry to grow, it's hard to predict what areas AI might enter.
Some developments in the AI space
In a major update, on May 13, OpenAI launched GPT-4o, a platform capable of processing audio, vision and text in real-time. The new application takes the interaction between humans and computers to the next level. The application can provide output in response to audio input in 232 milliseconds, with an average of 320 milliseconds. While the new product matches the performance of GPT-4 Turbo on English and code text, it is also 50% cheaper and much faster. The tool is also equipped to easily understand vision and audio input.
On May 20, Microsoft Corporation (NASDAQ:MSFT) launched CoPilot + PCs, which are designed for artificial intelligence. The new PCs are among the smartest and fastest PCs ever made. Its new silicon can perform over 40 trillion operations per second, has long battery life, and comes with built-in advanced AI models. Those in charge of the new devices will be able to create and enhance images in real time using Cocreation and functions in over 40 languages using the Live Caption tool. The PCs will be made available from June 18.
Wall Street is bullish on Microsoft Corporation (NASDAQ:MSFT). On May 22, analyst firm Wedbush reiterated Outperform rating on Microsoft Corporation (NASDAQ:MSFT) and maintained the price target at $500. Based on analyst estimates for the past 3 months, 32 Wall Street analysts have a Buy rating on the stock, with an average price target of $491.23 and a high forecast of $600. The stock's average price target is an upside of 11.88% from its current price of $427.25.
Now that we've discussed the latest developments in the AI space, let's take a look at 7 unstoppable artificial intelligence (AI) stocks to buy. You can also read our piece on Best AI Stock Picks by Billionaire Steve Cohen and Billionaire Stanley Durkin Miller's Best AI Stocks.
The closest part of a circuit board, its microchips make up a powerful computing system.
Our procedure
To come up with 7 unstoppable artificial intelligence (AI) stocks to buy, we reviewed the iShares US Technology ETF, the Fidelity MSCI Information Technology Index ETF, the iShares Global Tech ETF, and the iShares Expanded Tech Sector ETF, and our rankings of AI Added more than four ETFs including Companies and AI stocks. We compiled a list of 30 stocks and screened them on Finviz. We limited our sample to stocks that have gained at least 35% on a year-to-date basis through May 23, and selected the 10 with the largest share price gains. Our stocks are listed in ascending order of their YTD gains.
We also included hedge fund sentiment around each stock. The hedge fund data was drawn from InsiderMonkey's database of 933 elite hedge funds through the first quarter of 2024. The hedge funds' top 10 consensus stock picks have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (see details here). That's why we pay so much attention to this often overlooked indicator.
Is QUALCOMM Incorporated ( NASDAQ:QCOM ) the most unstoppable AI stock to buy now?
QUALCOMM Incorporated (NASDAQ:QCOM)
YTD gain as of April 23: 40.31%
Number of hedge fund holders: 78
QUALCOMM Incorporated ( NASDAQ:QCOM ) is one of the unstoppable AI stocks to buy. The semiconductor company develops hybrid AI architectures that are applicable to most generative AI applications and devices, including phones, laptops, XR headsets, cars and IoT. QUALCOMM Incorporated (NASDAQ:QCOM) is engaged in the development of AI hardware, AI software, and AI algorithms.
On May 7, Argus Research maintained a Buy rating on QUALCOMM Incorporated (NASDAQ:QCOM) and raised its price target to $205 from $180. The stock has a buy rating, according to 19 of the 28 Wall Street analysts who have covered it in the past three months. As of May 20, the stock has an average price target of $187.91 and a high forecast of $220.
On May 5, QUALCOMM Incorporated (NASDAQ:QCOM) reported earnings for the fiscal second quarter of 2024. The company reported earnings of $2.44 per share, beating estimates of $0.12. It also reported revenue of $9.39 billion, ahead of the market consensus of $39.41 million, with year-over-year revenue growth of 1.27 percent.
Madison Sustainable Equity Fund of Madison Investment Holdings Inc had the following to say about QUALCOMM Incorporated (NASDAQ:QCOM) in its Q4 2023 investor letter:
“QUALCOMM Incorporated (NASDAQ:QCOM) also reported better-than-expected fiscal fourth quarter results. The company led Samsung ahead of expectations in the first quarter as inventory headwinds fade. Qualcomm Mobile Hand Set is well positioned in the market and should benefit as artificial intelligence moves towards devices that can drive upgrade cycles.”
QUALCOMM Incorporated (NASDAQ:QCOM) ranks #6 on our list of the most unstoppable AI stocks to buy now. To see 5 stocks beating QUALCOMM Incorporated (NASDAQ:QCOM), check out our free report 7 Unstoppable Artificial Intelligence (AI) Stocks to Buy Now
If you're looking for an AI stock that's as promising as Microsoft but trades at less than 5 times its earnings, check out our report on it. Cheapest AI Stocks.
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Disclosure: None. This article was originally published on Insider Monkey.