Is This a Generational Entry Point or a Value Trap?

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• Qualcomm (QCOM) is up 60% in the past month as the company transforms from a supplier of smartphone chips to an AI powerhouse, now trading at 21.9x forward P/E after securing a major deal to supply millions of AI ASICs to ByteDance.

• Qualcomm stands to benefit from the supercycle of AI devices across phones, PCs, and edge computing, with some opportunity in the budget PC market where its Snapdragon C platform may capture share as consumers seek affordable AI devices amid inflation.

• The analyst who called NVIDIA in 2010 recently named his top 10 stocks and Qualcomm was not one of them. Get them here for FREE.

Qualcomm (NASDAQ:QCOM) stock has finally made up for lost time, joining the AI ​​race at a critical and hot time in the boom. With shares up more than 60% in the past month, the low-edge AI game is starting to get the respect it deserves. But whether the big breakout is just the start of a much bigger mover higher is still a big question.

In one of my earlier pieces dated March 20, I called Qualcomm “the biggest AI deal of the year” because of its many AI initiatives on the horizon. Since then, shares have nearly doubled, gaining nearly 94% in just over two months.

The easy money may have already been made, but I still see value here north of $250 per share.

The analyst who called NVIDIA in 2010 recently named his top 10 stocks and Qualcomm was not one of them. Get them here for FREE.

Qualcomm may not be the same price, but it’s still cheap

For the most part, the shares still look relatively cheap, trading at 21.9 times forward price-to-earnings (P/E) – a still very reasonable multiple following a straight uptrend. More rebalancing may still have a ways to go, especially as we view the company as much more than a supplier of smartphone chips.

With ASICs (application-specific integrated circuits), hardware focused on efficiency, and a move towards AI at the edge, it only seems natural that Qualcomm will finally have a chance to step up to the plate.

After the recent deal that will see Qualcomm hand over millions of AI ASICs to ByteDance – yes, that company behind TikTok – it should come as no surprise that the shares are starting to go into overdrive. Perhaps investors were right to give Qualcomm the benefit of the doubt as it diverged beyond the iPhone maker an apple (NASDAQ:AAPL). The big question for investors is whether Qualcomm can ink big chip deals as the tipping point approaches.

In my opinion, I think Apple can single-handedly lead the AI ​​revolution towards consumers as more people start looking at AI specs as a reason to upgrade their hardware.

As in-device AI becomes something that moves the needle, I think it’s also hard to dismiss the potential of AI-driven hardware sales. For Qualcomm, it must also benefit from the AI ​​device supercycle, whether we are talking about phones or PCs. Can we get to the point where the NPU becomes a bigger selling point than the CPU? It is possible.

Don’t underestimate the power behind budget PCs

In addition, however, that the budget devices may be a good opportunity for Qualcomm, as people look to find good deals in the middle of the unreasonable price of inflation in DRAM, NAND, and other PC components. Apple’s inexpensive MacBook Neo was the first hit. And Qualcomm could make some gains in the budget market as PCs look to lower the price bar.

The Snapdragon C (the “C” is for computer, not cheap) silicon platform looks very promising, especially since the big budget is where the market starts to heat up, where consumers want to save money by fixing powerful smartphone chips inside a laptop form factor.

From AI infrastructure to consumer-facing hardware, Qualcomm is starting to feel the wind at its back. If Qualcomm can keep up with new supply deals while positioning itself as a player in the AI ​​PC world, especially in the budget space, I think a higher re-rating on the stock would make sense. Either way, investors should keep an eye on the company as it looks to do what’s next after a dramatic spike.

The analyst who called NVIDIA in 2010 recently named his top 10 AI stocks

This analyst’s 2025 pick is up 106% on average. He recently named his top 10 stocks to buy in 2026. Get them here for FREE.