Qualcomm Pivots To AI
Chips companies continue to overcome any type of challenge thrown at them.
They climb a wall of worry and keep chugging along.
Of course, it helps that they are the cornerstone of the U.S. stock market, with the AI demand causing investors to throw money at these stocks.
They also have policy support with for example, the U.S. CHIPS and Science Act that provides $39 billion in subsidies.
Sounds like a good deal, right?
This is why I have dove headfirst into chip trades like the one I executed on in Qualcomm (QCOM).
A buy-and-hold strategy would also suffice, because these stocks can get wild in the short-term.
Price action is not for the faint of heart.
Why invest in QCOM?
They are clear leaders in mobile technology while also mixing in high-growth sectors like AI, automotive, and IoT, robust financial performance, and an attractive valuation.
The smartphone market is showing signs of recovery after a cyclical downturn. Industry estimates project mid-single-digit growth in global handset sales through 2025, driven by 5G adoption and new device launches.
June often marks the ramp-up for summer product cycles, with manufacturers like Samsung and Xiaomi unveiling new models powered by Qualcomm’s chipsets.
Another short-term catalyst is Qualcomm’s recent $2.4 billion acquisition of Alphawave Semi, announced in June 2025.
Alphawave, a UK-based leader in high-speed connectivity for AI and data centers, enhances Qualcomm’s portfolio in the booming AI infrastructure market.
This acquisition aligns with the growing demand for power-efficient computing, as data centers scale to support AI workloads.
Qualcomm’s long-term investment case is rooted in its strategic diversification beyond smartphones, positioning it as a leader in multiple high-growth sectors. The company is transitioning from a mobile-centric chipmaker to a diversified technology provider, with significant exposure to AI, automotive, IoT, and PCs. This balanced portfolio reduces reliance on any single market, enhancing long-term stability and growth potential.
Qualcomm is at the forefront of on-device AI, a trend expected to redefine consumer electronics. Its Snapdragon platform, optimized for AI tasks like natural language processing and image recognition, powers “offline AI phones” that are gaining traction.
Data suggest Qualcomm could dominate this space, as its chips are integrated into mainstream Android devices from brands like Samsung, Xiaomi, and Google.
The Alphawave acquisition further strengthens Qualcomm’s position in AI data centers, a market projected to grow at over 20% through 2030.
Qualcomm’s automotive business is a major long-term growth driver. The company’s chips power connected car systems, infotainment, and autonomous driving features, with automotive revenue growing at over 30% in recent years.
Qualcomm’s IoT portfolio, spanning smart homes, industrial devices, and wearables, is another growth engine. The company’s chips are embedded in billions of devices, generating steady royalty income.
QCOM’s expansion into the AI infrastructure market shows they are betting big in this part of tech, and that won’t stop anytime soon.
They are also highly productive in the mobile technology segment, which is booming these days.
Dividend and shareholder buybacks underscore how QCOM’s management is focused on returning value to the shareholders.
It’s really the right company in the right sub-sector of tech.
I am bullish on QCOM after the stock is on discount from the low $200 price range.
