1 Ridiculously Cheap Semiconductor Stock I Just Bought

Parkev Tatevosian, CFA•Oct 10, 2026

Summary

Parkev believes Qualcomm is undervalued and recently added the stock to Parkev's personal portfolio. The main thesis centers on Qualcomm's transition from a smartphone-centric company to a diversified player in the automotive and AI sectors. Parkev notes that while rising component costs for memory and storage have created temporary hurdles for smartphone sales, the long-term trend toward premium, high-tech devices favors Qualcomm's licensing and chip business. Parkev emphasizes that the company's asset-light model allows for high scalability and margin expansion, potentially returning to operating margins above 30% as AI demand scales.

Parkev provides an optimistic outlook for the non-smartphone segments, particularly driverless car technology and hyperscale data centers. Parkev highlights that autonomous vehicle components offer a massive growth runway and that recent agreements with major players like Meta Platforms signal a successful entry into the data center market. Parkev estimates that capturing just 1% of the hyperscaler market could increase Qualcomm's annual revenue by $10 billion. Parkev expects the most significant revenue contributions from AI initiatives to begin in late 2027 and accelerate through 2029.

QCOM: Parkev recently purchased Qualcomm shares and identifies a fair value of over $253 per share. At the current price of $181, Parkev sees 40% upside potential over the next 12 to 18 months. Parkev notes the forward P/E of 14 makes it one of the cheapest semiconductor stocks with an asset-light model.

MU: Parkev compares Qualcomm to Micron, noting that while Micron might have a lower valuation, Micron is significantly more cyclical. Parkev points out that Micron does not use an asset-light model because Micron handles its own manufacturing. Parkev views Qualcomm as a more stable investment with better margin potential.

META: Parkev mentions Meta Platforms as a key strategic partner for Qualcomm in the data center space. Parkev believes this partnership is a major catalyst for Qualcomm to gain market share in the AI industry. Parkev is optimistic that this collaboration validates Qualcomm's expansion strategy beyond mobile devices.

Mentioned Stocks

Sentiment: HOLD

Reasoning: Parkev compares Qualcomm to Micron to show relative value. Parkev notes that while Micron might have a lower P/E ratio, it is a much more cyclical business and lacks the asset-light manufacturing model that Parkev prefers in Qualcomm.

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