Wireless technology and semiconductor specialist Qualcomm (NASDAQ:QCOM) isn’t a member of the prestigious “Magnificent Seven” group of large-cap technology companies. Yet, investors shouldn’t ignore QCOM stock. Qualcomm provides growth, value, and yield, making it appealing to everyone.
Qualcomm also has an artificial intelligence (AI) angle, which we’ll discuss in a moment. When all is said and done, you’ll surely want to conduct your due diligence on Qualcomm stock and then make room for it in your portfolio.
QCOM Stock: A Treat for Passive Income Investors
If you think that all large-cap technology businesses are overpriced in 2023 and 2024, think again. Sure, Qualcomm stock recently rallied to its $130 resistance level. That doesn’t mean the stock is overvalued, by any means.
Remember, value isn’t just about price. Qualcomm’s GAAP trailing 12-month price-to-earnings ratio of 19.56x shows the company’s earnings justify its share price. For comparison, the sector median P/E ratio is 25.25x.
For passive income investors, Qualcomm offers a forward annual dividend yield of 2.44%. Meanwhile, the technology sector’s average dividend yield is only 1.025%. Moreover, some of the “Magnificent Seven” companies pay no dividends at all.
QCOM stock still needs to break through its 2021 peak of around $190. So, growth-focused investors will need to be patient with Qualcomm. Just relax and collect those delightful dividend distributions while you wait for the next leg up in the stock.
An AI-Tech Connection for Qualcomm Stock Traders
It would be awfully difficult for any technology company in 2023 and 2024 to entice investors if it doesn’t have an AI connection. Don’t worry about Qualcomm, though, as the company has new and exciting hardware that can power AI applications.
Specifically, Qualcomm recently introduced the Snapdragon 8 Gen 3, a new mobile platform designed for generative AI applications. It’s a platform that “integrates high-performance AI throughout the system,” according to a review from Exec-Edge.
Qualcomm unveiled the Snapdragon X Elite, which features Qualcomm’s Oryon central processing unit (CPU). This product, according to a review by Exec-Edge, “can run generative AI models with 13 billion parameters and offers 4.5x faster AI processing power compared to rivals.” That’s pretty impressive, and I’d say Qualcomm is a hidden gem among AI-compatible hardware manufacturers.
Get the Best of Both Worlds With QCOM Stock
What’s more important to you, value or yield? With Qualcomm stock, you don’t have to choose because you’ll get plenty of both. Plus, you’ll get access to the fast-growing market for generative AI compatible hardware.
Truly, Qualcomm deserves to be the eighth member of the so-called “Magnificent Seven.” So, if you’d like to make your tech-friendly portfolio more magnificent in 2023 and 2024, today is a great day to grab a few shares of QCOM stock.
On the date of publication, David Moadel 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.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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