Amazon Warrant Deal Makes Qualcomm an Underrated AI Stock Play
The artificial intelligence (AI) stock market has been flooded with overvalued stocks, making it difficult to find a good deal. However, Qualcomm (QCOM) is an underrated AI stock that may be worth considering. Recently, the company announced a partnership with Amazon (AMZN), which could unlock growth opportunities and lead to more gains for the stock.
Qualcomm has partnered with Amazon on custom chips, which could provide greater efficiency and reduce costs for the tech giant. In addition, Qualcomm has granted warrants to Amazon, allowing it to acquire $4 billion of its stock at a price of $161.26. This deep investment from Amazon could further incentivize other companies to rely on Qualcomm.
Qualcomm's stock performance has been underwhelming in recent years, with a year-to-date gain of just 6%. However, the partnership with Amazon could change this trend and provide more growth opportunities for the company. With a market cap of just under $200 billion, Qualcomm is still one of the smaller companies involved in AI chip development.