QUALCOMM (QCOM) Is Undervalued, Predicts ‘Resurgence’ in 2025
QUALCOMM Incorporated's unique position in AI technology, particularly in low-power, power-efficient chips for phones, PCs, cars, and IoT devices, makes it an attractive investment opportunity. Aswath Damodaran, a professor of finance at NYU Stern School of Business, believes that innovation in AI technology will commoditize AI products, leading to lower spending and reduced competition. Qualcomm's dominance in the premium Android market and its growing presence in automotive and commercial IoT segments are expected to drive its resurgence in 2025.
The resurgence of industrial IoT segments predicted by Aswath Damodaran could be a game-changer for companies like Qualcomm, which has already established itself as a leader in low-power AI chips.
How will the increasing adoption of edge computing and local intelligence in IoT devices impact Qualcomm's competitive position in the premium Android market?
QUALCOMM Incorporated (NASDAQ:QCOM) is poised to capitalize on the growing demand for reliable and scalable power sources in the AI data center sector, thanks to its latest X85 modem's AI edge over competitors like Apple's C1. As AI data centers expand, the need for efficient power solutions becomes increasingly critical, with projections suggesting that AI could significantly impact U.S. power consumption by 2030. To address this growing demand, QUALCOMM Incorporated is focusing on developing innovative technologies that can meet the energy needs of AI-driven data centers.
The emergence of AI-powered modems like the X85 from QUALCOMM Incorporated may signal a new era in the integration of artificial intelligence and telecommunications infrastructure, potentially revolutionizing the way we consume and transmit data.
Will the success of QUALCOMM Incorporated's X85 modem serve as a catalyst for further innovation in the field of AI-driven power solutions, or will competitors like Apple's C1 continue to pose significant challenges to the company's market position?
Qualcomm envisions a future where AI agents replace traditional apps, acting as personal assistants capable of managing tasks across devices, such as buying concert tickets while driving. The rise of these AI agents raises concerns about user privacy and the potential obsolescence of the app ecosystem, which has evolved significantly over the last decade. Despite Qualcomm's optimism regarding the capabilities of AI agents, skepticism remains about their widespread acceptance and the implications for app developers and users alike.
This shift towards AI-centric interfaces challenges the established norms of app usage, potentially redefining how we interact with technology and what we expect from our devices.
Will consumers accept a future where AI agents dominate their digital interactions, or will the desire for intuitive, visual interfaces prevail?
Honor is rebranding itself as an "AI device ecosystem company" and working on a new type of intelligent smartphone that will feature "purpose-built, human-centric AI designed to maximize human potential."The company's new CEO, James Li, announced the move at MWC 2025, calling on the smartphone industry to "co-create an open, value-sharing AI ecosystem that maximizes human potential, ultimately benefiting all mankind." Honor's Alpha plan consists of three steps, each catering to a different 'era' of AI, including developing a "super intelligent" smartphone, creating an AI ecosystem, and co-existing with carbon-based life and silicon-based intelligence.
This ambitious effort may be the key to unlocking a future where AI is not just a tool, but an integral part of our daily lives, with smartphones serving as hubs for personalized AI-powered experiences.
As Honor looks to redefine the smartphone industry around AI, how will its focus on co-creation and collaboration influence the balance between human innovation and machine intelligence?
Qualcomm's latest innovation, the X85 modem-RF platform, promises to drive unprecedented 5G speeds and intelligence, setting a new standard for connected devices. The AI-powered system integrates a cutting-edge processor to boost signal strength and enable faster data transfer rates. As the industry shifts towards more intelligent applications, Qualcomm's X85 is poised to deliver seamless streaming, downloads, and uploads.
The introduction of the X85 modem-RF platform underscores the importance of 5G technology in enabling widespread adoption of connected devices, particularly in industries such as automotive, XR, and IoT.
As 5G networks become increasingly ubiquitous, will device manufacturers prioritize seamless integration with these networks over other features to maintain competitive edge?
Honor has unveiled its "Alpha Plan" initiative, which aims to transition the smartphone brand into an AI device ecosystem company, leveraging collaborations with Google and Qualcomm to co-create an "intelligent ecosystem." The move is expected to deliver a software experience that rivals Samsung's in terms of quality and longevity, with extended support promises and new hardware launches. Honor's focus on AI applications may just strike a chord with users, positioning the brand for increased competitiveness in the mobile market.
This bold move by Honor signals a growing trend in the tech industry where companies are prioritizing software over hardware to stay ahead in the competitive landscape.
How will Honor's AI-driven strategy impact its ability to disrupt Samsung's dominance in the smartphone market and what implications will it have on consumers in the long run?
Amazon has unveiled Ocelot, a prototype chip built on "cat qubit" technology, a breakthrough in quantum computing that promises to address one of the biggest stumbling blocks to its development: making it error-free. The company's work, taken alongside recent announcements by Microsoft and Google, suggests that useful quantum computers may be with us sooner than previously thought. Amazon plans to offer quantum computing services to its customers, potentially using these machines to optimize its global logistics.
This significant advance in quantum computing technology could have far-reaching implications for various industries, including logistics, energy, and medicine, where complex problems can be solved more efficiently.
How will the widespread adoption of quantum computers impact our daily lives, with experts predicting that they could enable solutions to complex problems that currently seem insurmountable?
U.S. chip stocks have stumbled this year, with investors shifting their focus to software companies in search of the next big thing in artificial intelligence. The emergence of lower-cost AI models from China's DeepSeek has dimmed demand for semiconductors, while several analysts see software's rise as a longer-term evolution in the AI space. As attention shifts away from semiconductor shares, some investors are betting on software companies to benefit from the growth of AI technology.
The rotation out of chip stocks and into software companies may be a sign that investors are recognizing the limitations of semiconductors in driving long-term growth in the AI space.
What role will governments play in regulating the development and deployment of AI, and how might this impact the competitive landscape for software companies?
China's technology landscape in 2025 showcases remarkable advancements across multiple sectors, with the nation steadily positioning itself as a global technology powerhouse. Tech giants, including Tencent Holdings TCEHY, Alibaba BABA, Baidu BIDU, JD.com JD and PDD Holdings PDD, are making waves to capitalize on this technological renaissance, strategically investing in AI infrastructure and emerging technologies to strengthen China's digital ecosystem. The company's cost-effective AI architecture demonstrates that competitive AI models can be built at a fraction of Western competitors' costs.
The synchronized acceleration of cutting-edge technologies like AI, EVs, and AR across multiple Chinese firms could signal an irreversible shift in the global tech landscape, with far-reaching implications for industries worldwide.
What role will China's government-backed initiatives, such as the "Manufacturing Great Power" strategy, play in shaping the long-term trajectory of its technological advancements and how might this impact international trade dynamics?
Nokia announces new partnerships for AI-RAN development, teaming up with Nvidia, Softbank and T-Mobile, while PwC research indicates that the telecoms industry is likely to bloom after recent years of growth and increasing demand for 5G services. Microsoft releases a Microsoft Fabric telecoms-focused data model to unify data sources and streamline telco workloads. Vodafone and IBM join forces to enhance mobile phone quantum-safe cryptography using IBM Quantum Safe technology. Capgemini research outlines the priorities of B2B telecoms, including simplified buying processes, customization over cost, and creating and orchestrating an ecosystem.
The increasing focus on automation and AI in the telecom industry highlights the need for companies to develop more agile and adaptive business models that can keep pace with changing consumer demands.
Will these emerging trends in B2B telecoms lead to a future where traditional telco operators are replaced by new, more innovative players?
Alibaba is among Benchmark's Best Ideas list for 2025, with analysts citing improving fundamentals and renewed growth potential. The company's e-commerce platform has seen significant gains in recent years, driven by the increasing adoption of artificial intelligence (AI) technologies. Alibaba's position as a leader in AI and cloud computing is expected to continue driving its growth prospects.
Benchmark's endorsement of Alibaba highlights the critical role that AI and e-commerce are playing in shaping the company's future success, underscoring the need for businesses to invest heavily in these areas.
Can Alibaba maintain its competitive edge in a rapidly evolving tech landscape, where other companies such as Amazon and Google are also investing heavily in AI and cloud computing?
Alibaba's recent quarterly results show a notable revenue increase of 8% and an impressive 83% surge in operational income, signaling a potential turnaround for the tech giant after years of stagnation. The company's strategic shift towards a consumer-centered model and investment in artificial intelligence appears to be resonating with consumers, as evidenced by a 9% growth in customer management revenue. Despite ongoing competition from rivals like Pinduoduo and Douying, Alibaba's latest performance suggests that its efforts to regain market leadership may be starting to yield positive results.
This resurgence in Alibaba's stock may indicate a broader recovery trend within the Chinese tech sector, suggesting that companies can adapt and innovate even amid regulatory challenges and fierce competition.
What additional strategies might Alibaba need to implement to maintain its growth trajectory and fend off rising competition in the evolving e-commerce landscape?
Amazon has unveiled its first-generation quantum computing chip called Ocelot, marking the company's entry into the growing field of quantum computing. The chip is designed to efficiently address errors and position Amazon well for tackling the next phase of quantum computing: scaling. By overcoming current limitations in bosonic error correction, Amazon aims to accelerate practical quantum computers.
The emergence of competitive quantum computing chips by Microsoft and Google highlights the urgent need for industry-wide standardization to unlock the full potential of these technologies.
As companies like Amazon, Microsoft, and Google push the boundaries of quantum computing, what are the societal implications of harnessing such immense computational power on areas like data privacy, security, and economic inequality?
Amazon's unveiling of its revolutionary quantum chip, Ocelot, has sent shockwaves through the tech industry by slashing costs by 90%. By leveraging a novel cat qubit architecture, Amazon's innovation is poised to stabilize quantum states, making the path to scalable, fault-tolerant quantum computers more viable. The emergence of this cutting-edge technology signals a major escalation in the battle for dominance among tech giants to dominate the next computing revolution.
As the stakes grow higher, the question arises: will Amazon's strategic focus on cloud-based services and data analytics prove to be a winning formula, or will its foray into quantum computing lead to unforeseen challenges?
Can the industry handle the profound implications of a one-tenth resource reduction in large-scale quantum systems, potentially upending traditional business models and forcing widespread technological transformations?
Honor has unveiled its "Alpha Plan" initiative to transition the smartphone brand into an AI device ecosystem company, with a focus on giving its hardware the software experience it truly deserves. The plan involves investing $10 billion over five years for open collaboration with Google and Qualcomm, aiming to co-create an intelligent ecosystem of devices that can seamlessly communicate and interact with each other. Honor also announced several new products, including wearables, a smartwatch, and a tablet, which will be powered by its custom software and AI-powered features.
This move signals a significant shift in the smartphone industry towards software-driven innovation, where companies are prioritizing AI applications over hardware advancements.
As Samsung and other established brands continue to invest heavily in their own AI initiatives, how will Honor's "Alpha Plan" impact the competitive landscape of the smartphone market?
Fabless chip and software maker Broadcom reported impressive Q4 CY2024 results, with sales reaching $14.92 billion, surpassing market expectations by 2.1% and reflecting a 24.7% year-on-year growth. The company’s guidance for the next quarter also exceeded forecasts, particularly in AI semiconductor solutions and infrastructure software, which saw significant revenue increases. Broadcom's sustained growth trajectory, with a compounded annual growth rate of 19.2% over the past five years, underscores its competitive strength in the semiconductor industry.
Broadcom's success highlights the increasing importance of AI and 5G technologies, suggesting that companies focusing on these areas may experience similar growth trajectories in the near future.
As the semiconductor market remains cyclical, what strategies should investors consider to navigate potential downturns while capitalizing on growth opportunities?
ABI Research's latest report outlines a five-year forecast for the tech industry, highlighting significant growth in large language models (LLMs) and data management solutions while predicting declines for tablet demand and smartphone shipments. Emerging technologies like smart home devices and humanoid robots are set to experience robust growth, driven by increased consumer interest and advancements in AI. Meanwhile, traditional tech segments like industrial blockchain and datacenter CPU chipsets are expected to face substantial challenges and market contraction.
This forecast underscores a pivotal shift towards intelligent technologies, suggesting that businesses must adapt quickly to leverage emerging trends or risk obsolescence in a rapidly evolving market.
How might the anticipated decline in traditional tech segments reshape the competitive landscape for established players in the technology sector?
Apple's DEI defense has been bolstered by a shareholder vote that upheld the company's diversity policies. The decision comes as tech giants invest heavily in artificial intelligence and quantum computing. Apple is also expanding its presence in the US, committing $500 billion to domestic manufacturing and AI development.
This surge in investment highlights the growing importance of AI in driving innovation and growth in the US technology sector.
How will governments regulate the rapid development and deployment of quantum computing chips, which could have significant implications for national security and global competition?
TSMC's revenue climbed 39% in the first two months, outpacing previous growth and indicating resilient demand for Nvidia chips powering AI development. The company's robust performance signals a strong tailwind for the AI sector, with analysts projecting further growth of around 41% this quarter. As the manufacturer of most AI chips worldwide, TSMC's sales are closely watched by Wall Street and Silicon Valley.
The AI-driven growth spurt at TSMC could be driven by emerging applications beyond traditional computing, such as edge AI and autonomous vehicles, which may require more specialized chip designs.
Will the ongoing global semiconductor shortage impact TSMC's ability to meet growing demand for its AI chips, potentially affecting the overall trajectory of the sector?
Alibaba Group's release of an artificial intelligence (AI) reasoning model has driven its Hong Kong-listed shares more than 8% higher on Thursday, outperforming global hit DeepSeek's R1. The company's AI unit claims that its QwQ-32B model can achieve performance comparable to top models like OpenAI's o1 mini and DeepSeek's R1. Alibaba's new model is accessible via its chatbot service, Qwen Chat, allowing users to choose various Qwen models.
This surge in AI-powered stock offerings underscores the growing investment in artificial intelligence by Chinese companies, highlighting the significant strides being made in AI research and development.
As AI becomes increasingly integrated into daily life, how will regulatory bodies balance innovation with consumer safety and data protection concerns?
US chip stocks were the biggest beneficiaries of last year's artificial intelligence investment craze, but they have stumbled so far this year, with investors moving their focus to software companies in search of the next best thing in the AI play. The shift is driven by tariff-driven volatility and a dimming demand outlook following the emergence of lower-cost AI models from China's DeepSeek, which has highlighted how competition will drive down profits for direct-to-consumer AI products. Several analysts see software's rise as a longer-term evolution as attention shifts from the components of AI infrastructure.
As the focus on software companies grows, it may lead to a reevaluation of what constitutes "tech" in the investment landscape, forcing traditional tech stalwarts to adapt or risk being left behind.
Will the software industry's shift towards more sustainable and less profit-driven business models impact its ability to drive innovation and growth in the long term?
Amazon's launch of its new quantum chip, Ocelot, slashes error correction costs by up to 90% compared with current methods, harnessing the unique capabilities of cat qubits to accelerate complex computations. The innovative design leverages scalable manufacturing techniques from the microelectronics industry and incorporates error correction from the ground up. This breakthrough is expected to significantly impact various industries, including drug discovery, where it can facilitate faster and more accurate processing.
The introduction of quantum computing chips like Ocelot highlights the growing importance of technology in accelerating scientific breakthroughs, raising questions about how these innovations will be used to drive progress in fields such as medicine and climate research.
Will Amazon's dominance in the emerging quantum computing market lead to a new era of industry consolidation, or will other tech giants manage to catch up with their investments in this field?
Deutsche Telekom is building a new Perplexity chatbot-powered "AI Phone," the companies announced at Mobile World Congress (MWC) in Barcelona today. The new device will be revealed later this year and run “Magenta AI,” which gives users access to Perplexity Assistant, Google Cloud AI, ElevenLabs, Picsart, and a suite of AI tools. The AI phone concept was first revealed at MWC 2024 by Deutsche Telekom (T-Mobile's parent company) as an "app-less" device primarily controlled by voice that can do things like book flights and make restaurant reservations.
This innovative approach to smartphone design highlights the growing trend towards integrating AI-powered assistants into consumer electronics, which could fundamentally change the way we interact with our devices.
Will this 'app-less' phone be a harbinger of a new era in mobile computing, where users rely more on natural language interfaces and less on traditional app ecosystems?
Rigetti Computing's stock price may experience significant fluctuations as the company navigates the challenges of developing practical applications for its quantum computing technology. The firm's platform, Quantum Cloud Services (QCS), has already shown promise, but it will need to demonstrate tangible value and overcome technical hurdles before investors can confidently bet on its growth prospects. As the industry continues to evolve, Rigetti will likely face intense competition from established players and new entrants.
Rigetti's strategic priorities may be put to the test as it seeks to balance its investment in quantum computing with the need for sustainable business models.
Will governments' support for early movers in the quantum computing space prove sufficient to keep small businesses afloat until practical applications can be developed?
Quantum computing has the potential to be a generational investing trend, offering a massive market opportunity that could rival artificial intelligence investing. The field is being vied for by smaller pure plays and established big tech companies alike, with Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) emerging as the two most prominent players in this space. Both companies have made significant breakthroughs in recent months, but it remains to be seen whether either can establish a clear lead.
The advantage that quantum computing would offer over traditional computing - faster processing speeds and the ability to solve complex problems - is being carefully managed by companies through innovative solutions, such as error-correcting codes and novel state of matter technologies.
As the quantum computing landscape continues to evolve, will smaller, more agile players be able to disrupt the market dominance of established tech giants like Alphabet and Microsoft?
The mobile industry is witnessing a surge in innovative products, including ultra-slim phones, unique laptop form factors, and futuristic camera systems, as major manufacturers showcase their latest offerings at Mobile World Congress 2025. Samsung Display's tri-fold gaming handheld and Nothing's affordable Pro variant have generated significant buzz, while Xiaomi's 200-megapixel camera and Lenovo's concept laptops are redefining the boundaries of mobile technology. The competition is heating up, with each manufacturer vying for attention in a crowded market.
As the mobile landscape continues to evolve, it's becoming increasingly clear that the lines between premium and affordable devices are blurring, forcing manufacturers to rethink their strategies and invest in features that were previously reserved for high-end models.
What role will emerging technologies like foldable displays, 5G networks, and artificial intelligence play in shaping the mobile industry's future?