Qualcomm (QCOM) Positioned to Harness Immense AI Opportunity

Qualcomm (QCOM) Positioned to Harness Immense AI Opportunity

Tue, August 25, 2026 at 9:17 PM GMT+3 3 min read

• ^GSPC -0.02%
• QCOM +1.97%

Sound Shore Management, an investment management firm, has released its investor letter for the second quarter of 2026. The letter can be downloaded here. The Sound Shore Fund's Investor Class (SSHFX) and Institutional Class (SSHVX) rose 10.48% and 10.58% in the second quarter of 2026, trailing the Russell 1000 Value Index's 13.87% and the S&P 500's 15.20% returns. Over three years, SSHFX and SSHVX posted annualized gains of 19.41% and 19.66%, outperforming the Russell Value (17.79%) but underperforming the S&P 500 (20.61%). The powerful rebound of stocks in the quarter was driven by strong performances in AI and semiconductor sectors, amidst easing inflation fears and a stable labor market. The portfolio also benefited from the AI wave in the second quarter. The ongoing AI revolution is creating significant investment opportunities in multiple sectors, and Sound Shore remains committed to long-term assessments of a company's earning power, targeting stocks with durable management strategies. Also, check the fund's top five holdings to see its best picks in 2026.

In its Q2 2026 investor letter, Sound Shore Fund highlighted QUALCOMM Incorporated (NASDAQ:QCOM) as a notable contributor. QUALCOMM Incorporated (NASDAQ:QCOM) is a semiconductor and communication technology company focused on developing and commercializing foundational technologies for the wireless industry. On August 24, 2026, QUALCOMM Incorporated (NASDAQ:QCOM) closed at $158.53 per share. The one-month return of QUALCOMM Incorporated (NASDAQ:QCOM) was -2.08%, and its shares gained 0.20% over the past 52 weeks. QUALCOMM Incorporated (NASDAQ:QCOM) has a market capitalization of $167.55 billion.

Sound Shore Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q2 2026 investor letter:

"Sound Shore's portfolio also benefited from the AI wave in the second quarter. Sound Shore has always had exposure to IT (approximately 15% weight during Q2), but our value discipline will steer us away from the most expensive parts of the market. QUALCOMM Incorporated (NASDAQ:QCOM) and Marvell Technology, were two of our strongest contributors in 2Q. Both are excellent case studies, which we profiled in our first quarter letter as businesses marrying secular technology tailwinds with compelling valuations. A leading semiconductor supplier, Qualcomm (QCOM) is rapidly diversifying its business; its developer tools are accelerating edge AI functionality in new markets, driving demand for QCOM chips. We believe Qualcomm possesses the strategic flexibility required to capture the immense AI opportunity ahead. Notably, we believe Qualcomm is trading for an attractive 10 times earnings power once the new business kicks in."

QUALCOMM Incorporated (NASDAQ:QCOM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 95 hedge fund portfolios held QUALCOMM Incorporated (NASDAQ:QCOM) at the end of the second quarter, compared to 71 in the previous quarter. While we acknowledge the potential of QUALCOMM Incorporated (NASDAQ:QCOM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In a previous article, we highlighted QUALCOMM Incorporated (NASDAQ:QCOM) and examined its new phase of growth. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.