Qualcomm: Underrated AI Stock Positioned for 6G Boom

In an AI-driven bull market that has seen technology stocks surge, Qualcomm has remained surprisingly muted, losing close to 2% over the past year while the broader tech sector exploded higher. This performance stands in stark contrast to the market’s enthusiasm for artificial intelligence players, particularly those like OpenAI that kicked off the AI boom with ChatGPT. Yet Qualcomm’s underperformance may represent opportunity rather than weakness. The company has been actively “bringing AI everywhere” through new chip developments and partnerships, positioning itself as an infrastructure enabler rather than a headline-grabbing AI application company.

The company’s current challenges are well-documented—Apple’s transition to in-house modems represents a significant customer loss, while tariff tensions and other macroeconomic headwinds have weighed on sentiment. However, these near-term concerns may be obscuring Qualcomm’s strategic positioning in the broader AI ecosystem. As AI consumption moves increasingly to mobile and edge devices, Qualcomm’s expertise in power-efficient processing and wireless connectivity becomes increasingly valuable. The company’s ability to adapt beyond its Apple relationship suggests resilience that the market may be underestimating.

Looking beyond current AI applications, Qualcomm’s most compelling opportunity lies in the development of 6G wireless technology. While commercial deployment isn’t expected until around 2028, with mass adoption projected for 2030, the company is already investing heavily in what promises to be a transformative connectivity standard. The next generation of wireless technology will be crucial for supporting the massive data demands of future AI applications, including connected self-driving vehicles, advanced VR headsets, smart glasses, and seamless mobile AI connectivity to data centers.

The 6G standard’s dramatically reduced latency will be essential for truly next-generation applications that require instantaneous response times. Qualcomm’s historical leadership in wireless standards, from 3G through 5G, positions it ideally to capture significant value from this transition. As AI consumption “goes into overdrive” on mobile devices, the company’s expertise in both semiconductor design and wireless protocols creates a competitive moat that few companies can match. This long-term positioning represents a strategic advantage that current market sentiment appears to be discounting.

Qualcomm’s current valuation presents a compelling entry point for patient investors. Trading at just 15.9 times trailing price-to-earnings, the stock offers significant value compared to many AI-focused semiconductor peers trading at premium multiples. This valuation disconnect becomes particularly interesting when considering Qualcomm’s dual exposure to both the ongoing AI revolution and the forthcoming 6G transition. The company’s modest 33% gain over the past five years, while the broader market has surged, suggests substantial catch-up potential if either of these technological trends accelerates.

Historical patterns in semiconductor investing suggest that early leaders in new technology cycles often see significant multiple expansion as markets recognize their strategic positioning. Qualcomm’s current investment in 6G development, combined with its ongoing AI chip efforts, creates a scenario where the stock could “heat up well ahead of major launches” as investors anticipate the commercial rollout of next-generation wireless technology. For value-oriented growth investors, this combination of reasonable valuation and exposure to multiple technological megatrends represents a rare opportunity in today’s market.

The broader context of accelerating technological change—from AI progress toward artificial general intelligence to emerging quantum computing applications—suggests that connectivity will become increasingly valuable. Qualcomm’s position at the intersection of semiconductor innovation and wireless standards makes it a natural beneficiary of these trends. While the timeline for 6G commercialization extends several years into the future, the market’s tendency to price in such developments well in advance suggests that Qualcomm’s current undervaluation may not persist indefinitely.