QUALCOMM Incorporated (QCOM): A Bull Case Theory

 We came across a bullish thesis on QUALCOMM Incorporated on TechCache’s Substack by Joe Albano. In this article, we will summarize the bulls’ thesis on QCOM. QUALCOMM Incorporated's share was trading at $152.70 as of January 28th. QCOM’s trailing and forward P/E were 30.55 and 12.63 respectively according to Yahoo Finance.

Qualcomm is at a critical inflection point as it seeks to diversify beyond its traditional smartphone business, which has become increasingly dependent on Apple. With smartphone growth slowing and Apple developing its own chips, Qualcomm faces pressure to identify new revenue streams, and AI represents the most promising avenue.

While early consumer AI efforts, including AI PCs, contributed minimally to revenue in 2025, the company is now targeting the data center market, focusing specifically on AI inference—the stage where trained models generate predictions and insights. This strategic focus leverages Qualcomm’s long-standing expertise in low-power computing, offering potential advantages in energy efficiency and total cost of ownership compared with Nvidia’s high-bandwidth, high-power GPUs.

The company has made its first major breakthrough with Saudi Arabia’s Humain project, valued at approximately $2 billion, signaling initial traction in large-scale AI deployments. Qualcomm’s approach, centered on inference and efficiency, positions it to capture a niche in a rapidly growing AI market that could reach $500 billion annually by 2027. While Nvidia dominates the broader AI ecosystem, Qualcomm’s lower-cost, energy-efficient solution could appeal to cloud providers and enterprises seeking alternatives, providing a differentiated growth path.

If Qualcomm successfully scales its AI200 platform, it could meaningfully reduce its dependence on handset revenue and create a new growth driver for the company. Even partial adoption across global data centers could shift investor sentiment, expanding Qualcomm’s valuation beyond its smartphone legacy. With a clear strategy, strong engineering depth, and a massive addressable market, Qualcomm offers a compelling long-term investment opportunity, with upside tied to AI infrastructure specialization and adoption.

Previously, we covered a bullish thesis on QUALCOMM Incorporated (QCOM) by Christopher Kirincic in May 2025, which highlighted the company’s expansion beyond smartphones into automotive, AI edge computing, and IoT markets, supported by steady licensing revenue and attractive valuation. QCOM’s stock price has been flat since our coverage due to optimism around its diversified growth strategy. Joe Albano shares a similar perspective but emphasizes Qualcomm’s targeted push into AI inference and the AI200 data center system as a key driver for future revenue diversification.

QUALCOMM Incorporated is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held QCOM at the end of the third quarter which was 76 in the previous quarter. While we acknowledge the risk and potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QCOM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.