Qualcomm Is the Cheapest AI Stock in the Trump Bull Market – Here’s Why That Gap May Close

According to 24/7 Wall St., Qualcomm (NASDAQ: QCOM) is trading like a legacy modem company while quietly building the cheapest exposure to AI silicon in the Trump bull market. This mispricing is the core investment thesis, as the market has yet to recognize Qualcomm’s AI potential.

Rating Change

No explicit rating change was mentioned, but the report suggests the market is undervaluing Qualcomm relative to its AI peers, making it a potential value play.

Analyst Rationale

The report highlights several factors:

• Consecutive Earnings Beats: Qualcomm has beaten earnings estimates for four straight quarters.
• Share Buyback: The company announced a fresh $20 billion share repurchase program, signaling management confidence.
• Custom Silicon Program: Qualcomm confirmed a hyperscaler custom silicon program, opening a new revenue stream.
• Low Valuation: The stock trades at lower multiples than competitors like AMD and Broadcom, despite direct AI exposure.

Context

This analysis comes amid fierce competition in AI chips from NVIDIA, AMD, and Broadcom. While those companies focus on training and inference chips, Qualcomm is targeting custom low-power chips for edge devices and cloud computing. The stock’s recent performance has not yet reflected these developments.

What to Make of It

The analysis suggests Qualcomm may be an attractive opportunity for investors seeking AI exposure at a reasonable price. However, the market will ultimately decide whether the valuation gap closes.