To The Moon

Look, my $Qualcomm(QCOM)$ investment is poised to double in no time.

Let's chat about Qualcomm's investment strategy! Not surprisingly, Qualcomm would be the fastest stock I've ever bought to double.

Qualcomm's investment logic is simple.

AI phones

Qualcomm, the king of mobile chips, dominates the Android scene, and even $Apple(AAPL)$ relies on them for baseband chips. But the smartphone market has been flat since 2016. AI could be the game-changer.

With AI chips supporting multi-modal big models with up to 10 billion parameters, users can enjoy AI-powered features like text-to-image generation, image enhancement, and even AI virtual assistants on their phones.

This powerful AI performance could spark a fresh wave of phone upgrades, and AI chips fetch a higher price tag, meaning more profits for Qualcomm.

AI PCs

Qualcomm's forte is mobile chips, but $Intel(INTC)$ and $Advanced Micro Devices(AMD)$ rule the PC world. But why's Qualcomm set to benefit in the AI PC era?

Well, AI PCs require a ton of computing power and energy efficiency. The traditional X86 architecture isn't ideal for AI, but $ARM Holdings Ltd(ARM)$ -based chips like Qualcomm's could deliver better AI performance.

So, with AI PCs on the rise, Qualcomm's Arm-based PC chips are a natural fit. Many of the latest AI PCs are already rocking Qualcomm's X Elite chips. It's a whole new revenue stream for Qualcomm!

Automotive chips

Most autonomous driving chips in EVs use $NVIDIA Corp(NVDA)$ 's Orin, but for smart cockpits, Qualcomm's Snapdragon 8295 is the go-to choice. Qualcomm predicts their automotive chip revenue will hit $4 billion in the 2026 fiscal year, which is currently $2.17 billion:

So Qualcomm's riding the AI wave, but after a stellar rally, its market-to-sales ratio is at an all-time high. Analysts estimate revenue growth of around 7% in 2024 and 10% in 2025, which is a bit underwhelming compared to AI stars like Nvidia and $Broadcom(AVGO)$ .

Therefore, Qualcomm's wild ride might be over, and future gains will depend on beating expectations. Currently, analysts' target prices hover around $240, while the stock is trading at $227.