Last Update 29 Oct 25
Fair value Increased 20%In addition to edge computing, recent developments show that there are also opportunities for QCOM to leverage their expertise in energy & cooling efficiency within data centers - their new rack series is well positioned to be a highly efficient and low cost NPU, plenty of opportunity to be selected on anything besides training models.
Deals with HUMAIN, IRDM, and other companies along with this NPU use in data centers alongside the prior items outlined (I.e. edge computing) give me even further optimism.
Qualcomm is a steady-growth backbone of the AI era - a proven, cash-generating semiconductor leader that’s quietly positioned for a major re-rating. While most attention is on data center chips from NVIDIA or AMD, Qualcomm is building the connective layer that will bring AI to the edge - powering devices, drones, vehicles, and robots that think and communicate in real time.
The company is effectively using its dominant smartphone business as a cash engine to expand into automotive, IoT, and industrial AI applications, giving it exposure to multiple secular growth drivers without the same volatility as pure-play AI chipmakers. I see Qualcomm as a lower-risk, high-upside compounder - a bridge between established tech giants and next-generation innovators. It’s undervalued relative to its potential role as the “connective tissue” of the intelligent, connected world.
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