QUALCOMM Incorporated (QCOM) Gains Analyst Confidence as AI and Data Center Strategy Accelerates

Qualcomm Inc. (NASDAQ:QCOM) is one of the best augmented reality stocks to buy right now. On November 20, JPMorgan analyst Samik Chatterjee reiterated a Buy rating on Qualcomm Inc. (NASDAQ:QCOM), impressed by the company’s diversification efforts into the Automotive and IoT sectors.

The diversification drive has resulted in impressive growth with compound annual growth exceeding 20% over the past five years. Likewise, the growth rate is expected to accelerate amid heightened integration of artificial intelligence across markets, coupled with promising opportunities in the data center market.

The JPMorgan analyst expects the data center strategy that focuses on addressing power and memory challenges to yield significant revenue opportunities by 2027. That’s because the company’s AI 200 and AI 250 products are well-tailored to address these challenges by offering power-efficient performance and addressing memory bandwidth constraints. The company’s growing presence in the Edge market is also expected to enhance growth prospects.

On November 19, Adobe and Qualcomm announced a collaboration with Humain, the Saudi-backed AI company to create generative AI tools in Arabic for users in the Middle East. Adobe will embed its Arabic-trained Allam model into its creative applications. Humain will leverage Adobe Firefly Foundry to build region-specific AI solutions using Qualcomm’s new AI200 and AI250 chips. The partnership disclosed at a U.S.-Saudi investment forum during the Washington visit of Crown Prince Mohammed bin Salman also outlines a plan for a Qualcomm-Humain research and development center in Riyadh to support a broad deployment of AI data center chips next year.

QUALCOMM Incorporated (NASDAQ:QCOM) is a leading provider of the processors, software platforms, and semiconductor technologies that power AR experiences for both consumer and enterprise applications. Its Snapdragon processors, AR/VR chipsets, and 3D sensing solutions are used in AR headsets, smart glasses, and mobile AR devices, while development platforms and reference designs support OEMs in building AR hardware. As Qualcomm does not manufacture complete AR devices and AR is only a portion of its broader business, including mobile processors, telecommunications, automotive chips, and IoT—it is best considered an AR enabler and beneficiary.

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