From Nasdaq: 2024-11-20 07:16:00

Semiconductors are the backbone of AI, with Nvidia dominating the space. Despite a 752% share increase, SoftBank’s Masayoshi Son believes Nvidia is undervalued due to the growing generative AI market. Qualcomm, on the other hand, is quietly emerging as an AI star, with a focus on mobile and IoT devices.

Qualcomm’s revenue grew 9% to $38.9 billion in fiscal year 2024, with a notable turnaround in the second half. Net income and EPS both rose by 40%, showcasing impressive profitability growth. The company also approved a $15 billion stock buyback program to reward shareholders and deploy excess cash flow.

With a forward P/E of 14.3, Qualcomm appears undervalued compared to peers in the semiconductor space. Coupled with the $15 billion buyback program, Qualcomm’s management likely sees the stock as undervalued. While Nvidia may have potential, Qualcomm’s valuation makes it a more compelling opportunity for long-term investors.

Consider investing in Qualcomm over Nvidia, as it is currently undervalued and shows growth potential. Qualcomm’s $15 billion stock buyback program and promising financials make it an attractive investment option. Stay informed with The Motley Fool’s Stock Advisor service for expert guidance and stock picks.



Read more at Nasdaq: SoftBank’s Masayoshi Son Says Nvidia Stock Is Undervalued. Here’s Another Artificial Intelligence (AI) Stock I Think Is a Better Bargain.