This season has seen the metaverse become one of the most hotly debated and discussed topics throughout multiple industries. Since the social media giant formerly known as Facebook adopted Meta (NASDAQ:FB) as its name, many companies have shifted focus to metaverse technology in attempt to cash in on what promises to become the next boom of the tech sector. Qualcomm (NASDAQ:QCOM), a company that made a name for itself by producing semiconductors and other electronic components, has made it clear that it wants to help bring the metaverse to consumers. Even announcements to that front have sent QCOM stock shooting up this week.
What’s Happening With QCOM Stock
QCOM stock has been rising since Qualcomm CEO Cristiano Amon recently laid out his company’s plans for the future. According to him, we can expect to see Qualcomm gain a strong foothold in the space of producing chips for the “IoT Next,” a concept that centers around the metaverse. Amon made the case that Snapdragon, the company’s modem platform mobile and application processor, will be what carries consumers into a metaverse-centric future.
Today began with QCOM stock spiking within the first hour of trading. Although it has fallen since, it’s still up almost 2% on the day with a rebound uncertain. This week has seen it climb steadily, though, rising more than 13% within the past five days. Additionally, the stock has demonstrated impressive growth throughout the previous month, rising by more than 43%.
Why It Matters
As the largest chip producer in the world, Qualcomm is positioned to gain a market share in the metaverse space. It has established itself in both smartphone and IoT (internet of things) markets. Therefore, there’s no reason to suspect that it won’t be able to do the same as both companies adapt to the fast-expanding metaverse field that will likely transform financial markets within the coming years. Facebook’s Oculus Quest, one of the most popular virtual reality (VR) devices on the market today, is powered by Snapdragon. The device is well reviewed, and Qualcomm reports that its popularity is rising.
Qualcomm’s innovations within the 5G technology space, as well as its successful forays in multiple tech markets, have earned it a “buy and hold” rating from David Cohne. As his analysis notes, many other analysts have issued similarly positive ratings on it, indicating that the sentiment of QCOM stock being a good buy for the year ahead is high.
What It Means
All signs point to Qualcomm being a stock with plenty of potential for the year ahead. We’re already seeing Metaverse excitement overtake the tech sector. This trend is only going to continue into 2022. Accordingly, QCOM stock will likely soar as the company works to gain a market share in this emerging space.
Whether we like it or not, the metaverse is here. And it’s only going to keep developing as we move forward. The companies that establish themselves as key players within the space are going to be well positioned for significant growth. Currently, Qualcomm seems to be at the forefront of the pack.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.