Qualcomm (NASDAQ:QCOM) stock, the chipmaking leader in wireless connectivity, has weathered a challenging macroeconomic environment surprisingly well. However, despite its resilience as their await for a rebound in the handset market the stock has remained undervalued. This will have important implications for Qualcomm stock investors.
Looking ahead, there are several catalysts in 2024 that will lay the foundation for accelerated growth. Mainly, their AI CPU (Snapdragon X Elite) that is set to revolutionize the PC market. Investors remain optimistic on the platform’s capabilities, including advancing machine learning models, neural processing units (NPUs), and heterogeneous computing applications.
Generative AI’s Rising Significance
The explosion of LLMs like ChatGPT puts an increased spotlight on Qualcomm. Generative AI, which involves machine learning algorithms, requires significant processing power. Qualcomm’s specialized AI chips are well positioned to meet the growing demands of AI workloads.
Qualcomm stock has already landed partnerships with leading AI companies and industry leaders. One being their recent partnership with Nokia Bell Labs to enable multi-vendor interoperability to achieve better performance and greater energy efficiency.
This almost seems similar to the collaboration in the cryptocurrency space, which has been proven to drive scalability and adoption. Collaboration efforts in areas like 5G connectivity, edge computing, and healthcare analytics can foster healthy synergies and drive market penetration.
Growth in Mobile Computing and Snapdragon X Elite
Qualcomm’s upcoming Snapdragon X Elite platform is set to revolutionize the PC market. Their AI CPU is set to run AI models 2X faster than its competitors.
The mobile computing market is getting extra juice as consumers look for cheaper prices, faster processing times, and great efficiency. This bodes well for Qualcomm stock, with their chips being tailored for AI inference ensuring steady demand for their products.
In addition to its processing prowess, the Snapdragon X Elite CPU includes unparalleled connectivity features. This includes support for lightning fast 5G networks, Wi-Fi 6E, and Bluetooth 5.2. This ensures users stay connected at blazing speeds, whether streaming in high-definition, gaming online, or participating in video calls.
Qualcomm Won’t Be Cheap for Long
Over the last year, investors have largely looked past Qualcomm stock after they delivered abysmal financial results in FY23. However, it is important to know that just a year prior they had delivered record earnings results and were later impacted by handset market slowdown.
Qualcomm valuation is still cheap, relative to its long term growth prospects. With the release of their Snapdragon X Elite CPU in 2024, the business could be undergoing a massive turnaround. It is certainly something that AI growth investors will not want to miss.
On the date of publication, Terel Miles 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.
