Qualcomm (QCOM) could be the next big AI winner.
All thanks to its smartphone chips. In fact, according to TD Cowen, “Qualcomm, a maker of mobile processors and 5G wireless chips, could be an underappreciated beneficiary from the rising trend toward artificial intelligence.”
The firm just reiterated an outperform rating on QCOM with a price target of $135.
“As AI adoption grows and as computing demands increase, a hybrid AI architecture will be needed to distribute processing across the cloud and end-devices rather than within the cloud alone,” said the firm, as quoted by Barron’s. “We see Qualcomm as positioned to leverage its existing expertise and share in handsets and mobile devices into emerging edge computing and inference [using a pre-trained AI model to give an answer] applications.”
QCOM last traded at $116.24. We’d like to see it test $130 next.