While investors may be looking for other opportunities in the AI space, chipmakers still remain the key hardware provider. And the increase in AI tools could potentially continue to fuel strong growth for the right chipmakers in 2025 and beyond.
Investors who got into the trade early are right to look around for other opportunities and diversify out some profits. But other chipmakers are potentially set for some big and surprising growth in the months ahead.
One such player is Qualcomm (QCOM). The chipmaker’s expertise in mobile communications chips make it a key player for bringing AI tools onto smartphones. Plus, the chipmaker just won a legal dispute against one of its partners.
With conditions lining up for Qualcomm, 2025 could build on the stock’s lackluster 5% gain in 2024. Shares could move to regain their old highs, meaning at least a 50% return from here.
Qualcomm’s performance has been exemplary, with a 19% rise in revenues, and a 96% jump in earnings. Add in a 26% profit margin, and shares look ready to move higher in 2025.
Action to take: Shares could be forming a base here, and poised for a rally. At current prices, share atlso pay a 2.2% dividend, with room for further increases in the future.
For traders, the March 2025 $175 calls, last trading for about $4.55, could deliver mid-to-high double-digit returns in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.