Is QUALCOMM (QCOM) The Best AI Chip Stock to Buy Now?

We recently published Top 10 Analyst Calls on Trending Stocks You Shouldn’t Miss. QUALCOMM Incorporated (NASDAQ:QCOM) is one of the major analyst calls.

Stacy Rasgon, Bernstein senior U.S. semiconductor analyst, explained in a program on CNBC in June why he was bullish on Qualcomm. At the time, QCOM was among the analyst’s best stock ideas. Here is what he said at the time:

“I’m pretty positive on the continued prospect at least for content growth if not necessarily for unit growth in smartphones. personally think they can probably grow their Android business high single to even low double digits um in a flat unit market on the back of new AI phones and everything else that are continuing to drive content. Yeah, I think there’s a lot of other stuff to like here as well though. Look, I think the smartphone market which has been in decline does look like it’s bottomed. Again, those mixed trends I think are good.”

QCOM is up 8% since Rasgon’s comments.

Mairs & Power Balanced Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q1 2025 investor letter:

“The Information Technology sector underweight had the largest relative impact on returns during the quarter. Only one of the Fund’s technology holdings posted a positive quarterly return – QUALCOMM Incorporated (NASDAQ:QCOM) – making this a somewhat hollow outperformance. Qualcomm is a “value tech” company which has enviable cash flows but we believe has been consistently underappreciated in the market for its technology licensing business, which has frequently been targeted for legal action by some of its major customers. However, we believe it continues to prove its best-in-class technology and, despite companies attempting to circumvent Qualcomm, we continue to see a long-term position in the wireless technology space for the company.”

While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.