Is QUALCOMM (QCOM) The Best AI Chip Stock to Buy Now?

Core Viewpoint - Qualcomm Incorporated (NASDAQ: QCOM) is viewed positively by analysts, particularly for its potential growth in content within the smartphone market, despite a flat unit market. The company is expected to grow its Android business in the high single to low double digits, driven by new AI phones and other innovations [1]. Group 1: Analyst Insights - Stacy Rasgon, a senior U.S. semiconductor analyst at Bernstein, expressed bullish sentiments on Qualcomm, noting that the smartphone market appears to have bottomed out, which is a positive sign for the company [1]. - Since Rasgon's comments, Qualcomm's stock has increased by 8% [1]. Group 2: Fund Performance - Mairs & Power Balanced Fund highlighted Qualcomm as the only technology holding that posted a positive return in Q1 2025, indicating its relative strength in a challenging sector [2]. - The fund described Qualcomm as a "value tech" company with strong cash flows, although it has been underappreciated in the market for its technology licensing business [3]. Group 3: Long-term Outlook - Despite facing legal challenges from major customers, Qualcomm is believed to maintain a strong position in the wireless technology space due to its best-in-class technology [3]. - There is a belief that while Qualcomm has investment potential, some AI stocks may offer greater returns with limited downside risk [3].