We recently compiled a list of 10 undervalued chip stocks near their 52-week lows. In this article, we’ll take a look at how Qualcomm Inc. (NASDAQ:QCOM) stands compared to other undervalued chip stocks.
Energy and EV stocks remain in the spotlight as President Donald Trump signs a series of executive orders with far-reaching implications for many industries. He even rescinded an executive order related to AI, which deals with issues that may not directly impact a company’s sales in the short term. AI stocks have been under the radar for a few weeks, but with earnings season about to get into full swing, the same opportunities may not present themselves in the coming weeks.
Many semiconductor stocks remain undervalued. The main reason is the lack of demand in the niche industries these companies serve. However, this demand will ultimately change at some point in 2025, making it very attractive to consider now.
We’ve come up with 10 stocks that we believe are undervalued, near their 52-week lows, and offer good investment opportunities. To find 10 cheap semiconductor stocks near 52-week lows, we considered only stocks with market caps between $10 billion and $200 billion that recently hit 52-week lows.
A close-up of a silicon die is extracted from a semiconductor wafer and attached to a substrate by a pick-and-place machine. Manufacturing semiconductor packaging process of computer chips in factory.
Technicians testing the latest 5G devices. Demonstrates the company’s commitment to innovation.
Fresh off its legal victory against ARM Holdings, Qualcomm stock is already up 7% year-to-date. But over the past six months, the stock has fallen nearly 28%, ending up much closer to its 52-week low in February of last year.
There are multiple reasons for this economic downturn. China is one of them, and the semiconductor technology war continues to attract attention, and this issue will not be resolved soon. Another is Apple, a major customer that plans to completely phase out the use of Qualcomm modems within the next two to three years.
These two issues have pushed the stock near 52-week lows, giving investors an opportunity to buy more. The worst seems to have been priced in, with the company’s sales expected to increase further in 2025 as new products launch, and a recovery in the stock price could be on the horizon.
Overall, QCOM ranks 5th on the list of undervalued semiconductor stocks near their 52-week lows. While we acknowledge QCOM’s potential as an investment, we believe some AI stocks are more likely to deliver higher returns and do so in a shorter period of time. If you’re looking for an AI stock with as much promise as QCOM, but trading at less than 5 times earnings, check out our report on the cheapest AI stocks.
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