This Underrated AI Stock is Readying Up for a 6G Boom

Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) stands out as one of the lesser-appreciated semiconductor names as the AI revolution continues to play out, while other emerging tech trends also start to gain traction among growth and momentum-focused investors. Indeed, the AI race and the road towards AGI (or artificial general intelligence) seems to be on, with many hyperscalers signing deals or taking stakes in the great OpenAI, the firm that kicked off the AI boom when it unleashed ChatGPT to the world.

Indeed, we’re in an AI-driven bull market and one that doesn’t seem to care all too much about the government shutdown and the lack of new economic data coming in.

With employment numbers in an unknown spot and the potential for inflation to regain an upper hand as the Fed starts reducing interest rates, there’s plenty to be worried about. But I think the market has it right to pay less attention to the transitory economic concerns and more attention to the profound industrial revolution that might be advancing faster than investors are prepared for.

Looking beyond the obvious AI winners, as new themes (quantum and 6G) look to unfold

With the rise of the quantum computing stocks, it appears that there might be other game-changing technologies that stand to accelerate AI progress en route to some form of superintelligence. As AI jolts the energy space and software names, I’d encourage investors to consider the broader industries that stand to mint new AI winners. When it comes to next-level AI, a ton of energy will need to be used, so much so that nuclear power is seen as the solution.

Additionally, I think connectivity is another booming corner of the market that may not be fully appreciated. Arguably, the wireless connectivity players, I believe, might even be underappreciated. Qualcomm stock has been relatively muted this past year, losing close to 2% while the tech sector exploded higher.

Zooming further out, shares of QCOM have been rather lackluster over the past five years, gaining just under 33% over the timespan. With Apple (NASDAQ:AAPL), a major customer of Qualcomm’s, already making its own modems, Qualcomm is due to take a hit. Combined with tariff tensions and other headwinds and QCOM seems like a name that deserved to have been left out in the great bull market.

Looking out into the future, though, I view Qualcomm as well-positioned to adapt and even thrive in an era where Apple is no longer its biggest modem customer. Apart from “bringing AI everywhere,” as it unleashes new chips while teaming up with various firms on their AI efforts, Qualcomm also has a front-row seat to the rise of 6G.

Qualcomm and the 6G opportunity could be transformative come 2028

Indeed, Qualcomm might not be the most explosive chip stock in the world, but like so many other semi plays that eventually followed in the lead of the most blistering of AI stocks, I do think that Qualcomm will get its time as it continues to invest heavily for the rise of 6G wireless, the next generation in wireless connectivity, which, I think will be a big deal as AI consumption (especially on the go) goes into overdrive.

Now, it’s going to take some number of years before commercial 6G takes off. However, when the time comes (whether it’s 2028 en route to mass adoption in 2030), I do think Qualcomm will regain its edge. Indeed, by 2028, I think it’s not hard to imagine that there will be more devices out there that will be complete data hogs (think connected self-driving vehicles, smart glasses, VR headsets, next-gen phones connecting to AI data centers, and even high-resolution video-game streaming). Additionally, lower latency provided by 6G will be a must for truly next-gen connectivity.

Either way, Qualcomm looks like it’ll be a leader in the space, and while we may need to wait two to three years for the tech to really hit the ground running, I do think that QCOM shares might heat up well ahead of such major launches. For that reason, QCOM stock is a great buy today while it’s down and out, and trading at a mere 15.9 times trailing price-to-earnings (P/E).