QCOM Forecast: Why Qualcomm Stock Is Giving Off Strong Buy Vibes for 2024

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Qualcomm (NASDAQ:QCOM) stock recently announced a groundbreaking partnership with Microsoft to power the next generation of AI-powered personal computers. This strategic alliance marks a significant milestone for both companies. It also opens up a vast array of opportunities in the rapidly expanding AI world. 

The collaboration will utilize Qualcomm’s Snapdragon X platform known for its performance and energy efficiency. The partnership integrates Qualcomm’s AI chips into Microsoft’s surface PCs to enhance user experience. Qualcomm has several tailwinds in its favor. The company is truly just getting started!

Microsoft Deal and Qualcomm Stock

Microsoft’s decision to incorporate Qualcomm’s AI chips into its Surface PCs represents a major endorsement of their technological prowess. While they are no stranger to the game, Wall Street is slowly understanding the role that the company will play in the competitive AI arena.

The Surface line’s sleek designs and premium features cater to a wide range of consumers and professionals. By partnering with Microsoft, Qualcomm stock gains access to a vast and influential market.

This deal alone is a big deal, and it will inevitably drive significant demand for Qualcomm’s Snapdragon platform. As AI continues to revolutionize nearly every aspect of our lives, from productivity to entertainment, the demand for AI-enabled devices will continue to soar. 

Robust Snapdragon X Platform

Qualcomm’s Snapdragon X platform is at the heart of this transformative partnership. Designed specifically for AI applications, the Snapdragon X platform offers a unique combination of high performance, power efficiency, and advanced connectivity.

Its heterogeneous computing architecture seamlessly integrates multiple processing units, including a dedicated AI engine to accelerate AI workloads. Moreover, the Snapdragon X Elite CPU can run generative AI models 2X faster than its competition. 

The Snapdragon platform’s exceptional performance is why Microsoft selected them amid the large numbers of competition. This high performance and power efficiency is crucial for mobile devices like laptops and tablets, where battery life is a critical component.

By incorporating the Snapdragon X platform, Microsoft is in good hands and can deliver a truly portable and immersive AI experience for its users.

Rebounding Handset Market and Growing Automotive Revenues

Beyond the Microsoft partnership, Qualcomm’s long term growth prospects are further bolstered by the ongoing rebound in the handset market and growing automotive revenues. The global smartphone market, which experienced a showdown during the pandemic, is now showing signs of a recovery. 

As consumers continue to upgrade to 5G-enabled devices, Qualcomm’s modem and RF front-end solutions are in high demand. Furthermore, their automotive business continues to gain momentum. Investors turned to their latest Q2 FY24 earnings results, where revenue grew 35% from the year prior. 

The company’s Snapdragon Digital Chassis platform provides a comprehensive suite of automotive solutions. Some of its product offerings include telematics, connectivity, infotainment, and driver assistance systems.

As the automotive industry undergoes rapid transformation, Qualcomm stock is well positioned to capitalize on the growing demand for connected and autonomous vehicles.

Qualcomm Stock: The AI Story is No Longer a Secret  

Qualcomm stock has been on a tear in the last month, as investors fully realize the company’s AI story. It is no longer a secret, especially after their recent PC deal for AI chips with Microsoft. 

The growth of their Snapdragon X platform is driving increased investor attention and Wall Street is looking beyond highflying chip stocks like Nvidia. With a rebound in the handset market underway and growing automotive revenues, QCOM stock’s AI growth story is only just beginning.

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.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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