Qualcomm: AI Boom Ignored

Stone Fox Capital Investing Group Leader Follow Summary Qualcomm is executing a major pivot from handsets to AI data centers, highlighted by a transformative AWS deal. The wireless company targets $15B in data center revenue by FY29, with non-handset sales projected at $40B, signaling robust diversification. The AWS agreement includes up to $60B in payments for 25M warrants, accelerating QCOM’s data center revenue ramp at a limited cost. The stock trades at ~10x FY29 EPS target of $18, offering substantial upside as the market underappreciates its AI-driven growth trajectory. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » JHVEPhoto/iStock Editorial via Getty Images QUALCOMM Incorporated ( QCOM ) signed another big AI data center deal, virtually sealing the corporate shift away from a future reliant on handsets. The stock hasn't even rallied this year despite several large AI chip This article was written by Stone Fox Capital 56.64K Followers Follow Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of QCOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.