David Tepper Sells AI Stocks, Invests in High-Potential Chipmaker
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Fool
- Portfolio Adjustment: David Tepper's sale of AI-related stocks like Micron, Oracle, and Intel locks in substantial profits, showcasing his keen insight into market dynamics and strategic shifts amid the AI boom.
- Intel Investment Returns: Tepper's investment in Intel yielded significant returns within months, particularly after the U.S. government announced a stake purchase, indicating that government backing may provide a larger runway for customer development.
- Oracle's Risks and Opportunities: Despite Oracle's stock soaring in 2024 due to a $300 billion contract with OpenAI, Tepper's decision to reduce his holdings in early 2025 reflects a cautious stance on the company's financial health, especially given its high debt levels.
- Qualcomm's Growth Potential: Tepper's investment in Qualcomm highlights his recognition of the company's potential in AI, particularly with its upcoming AI chip releases, which are expected to drive rapid growth in the smartphone and automotive markets.
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Analyst Views on QCOM
Wall Street analysts forecast QCOM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QCOM is 197.14 USD with a low forecast of 165.00 USD and a high forecast of 225.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
10 Buy
5 Hold
1 Sell
Moderate Buy
Current: 152.700
Low
165.00
Averages
197.14
High
225.00
Current: 152.700
Low
165.00
Averages
197.14
High
225.00
About QCOM
Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Qualcomm Named Among 15 Best S&P 500 Dividend Stocks for 2026
- Dividend Stock Recommendation: Qualcomm has been named one of the 15 best S&P 500 dividend stocks to buy in 2026, indicating its appeal among investors despite facing valuation pressures.
- Analyst Rating Maintained: On January 15, Citi maintained a Neutral rating on Qualcomm with a $180 price target, noting that the stock is currently trading above its historical valuation levels, reflecting market caution regarding its future performance.
- Chip Manufacturing Collaboration: Qualcomm is in discussions with Samsung Electronics to contract manufacture two-nanometer chips, with the CEO stating that design work is complete and commercialization is expected soon, which will enhance Qualcomm's competitiveness in advanced process technology.
- Market Outlook Analysis: While Qualcomm shows investment potential, analysts believe certain AI stocks offer greater upside potential and lower downside risk, advising investors to carefully consider market dynamics when making selections.
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Qualcomm Emerges in AI Data Center Market
- Weak Guidance Impact: Intel's fourth-quarter results exceeded expectations; however, a projected revenue of only $12.2 billion led to a 16% stock drop, indicating a continued decline in its market leadership amid increasing competition.
- Qualcomm's Tech Breakthrough: The Snapdragon X Elite processor, unveiled in 2023, is designed for laptops and capable of handling generative AI tasks directly, marking a significant advancement in high-performance computing that could reshape the market landscape.
- AI Data Center Entry: Qualcomm's AI200 and AI250 chips focus on AI inference, offering superior memory capacity and performance, officially entering the AI data center market and increasing competitive pressure on Intel.
- Future Growth Potential: Despite current financial challenges due to weak smartphone demand, Qualcomm's long-term outlook remains positive, with anticipated acceleration in sales and earnings growth driven by the launch of AI processors and a rebound in smartphone upgrade demand.
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