Buy Opportunity on Qualcomm (QOM) on AI Chip Pullback

2 months ago

Mark

"On October 27th Qualcomm announced that they were getting into the AI chip business. Now Qualcomm is an experienced player in semiconductor chips. And even before that announcement we were bullish on Qualcomm. The reason being that they made an acquisition about three or four years ago, not a very expensive one, maybe a billion or two billion dollars that enables them to compete with Apple in that next generation PC chip. And the market really hasn't given them enough credit for that. But then on October 27th, they announced that they were getting into the AI chip business. The stock spiked up over 30%, maybe 35% and it's now pulled back. I think that for a chip play that's less sort of obvious than Nvidia and AMD, I think Qualcomm is very attractive from a long-term point of view. Anytime you see a stock spike up on news, pull back, but hold the level that it was at prior to the spike, that's an attractive time to be looking to buy it."

Qualcomm is highlighted as an attractive long-term buying opportunity following a significant price spike and subsequent pullback, driven by its strategic move into the AI chip business and a previous acquisition that positions it against competitors like Apple.

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