Qualcomm (QCOM)
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Semiconductor companies enjoyed a massive rally over the past three years, but one of the most prominent name in the industry has lagged far behind. Qualcomm is a household name that we’ve all basically come across in our daily lives. Almost every phone makes licenses Qualcomm wireless tech in some way or another. They own essential 5G / LTE patents, and are fast tracking their way to being a 6G leader. Other areas where Qualcomm exists are Wi-Fi boxes at home, laptops, wearables…etc.
Qualcomm’s weak performance against the market is likely due to their maturity as a company. Despite their presence in so many areas of the connectivity world, growth in the industry is not as robust as it used to be. However the company is shifting to a new opportunities that can unlock billions in revenue:
- Automotive / Vehicles
- On-device / Edge AI
- Data centers
Their automotive segment is already doing work. Over 400 million vehicles use the technology and it now produces more than $1 billion in quarterly revenue. On-device and edge AI is attempting to take a shot at physical AI…which is a huge opportunity right now (it was a massive topic at CES 2026…we shared photos of examples when we attended last month). And finally, data centers are a hot topic and will remain as so in the coming years…Qualcomm acquired Alphawave Semi in order to accelerate entry into high speed connectivity for AI and cloud data centers.
This broadening of revenue and expansion suggests a bullish case is growing for Qualcomm. At only $150 billion in market cap, it is among the cheapest semiconductor stocks in the industry. Revenue is not explosive, but it is steady…and its well-recognized names gives them an edge in a market where investors are searching for quality over high growth.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around. Wanna see real-time market updates? Learn more here.
Eaton Corporation (ETN)
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Electricity demand is projected to grow roughly 3.7% in 2026…while that number seems small, it is a noticeable uptick in growth than recent years. Average growth between 2010-2023 was around 2.7% per year, but the trend changed in 2024, when AI, data centers, and digital infrastructure began to demand more power. This has forced U.S. utilities to invest large capital to support the growth trend, we’re talking multibillion dollar investments to upgrade the grid to handle the explosive growth.
One of the companies benefitting from this trend is Eaton Corp. While electricity demand is expected to grow 3.7%, it is contributing to much higher growth in electrification expansion…which is set to grow at an average of 8.7-9.7% through 2033. This directly supports Eaton’s business, which benefits from grid modernization, energy storage, power management, and EV charging infrastructure.
While Eaton is not an energy producer, the company is benefiting from demand tailwinds. Pace of revenue growth has ticked higher to low double digits as of Q2 last year, and future outlook remains robust as grid modernization and data center spending continues.
Eaton just reported earnings and reached a new record high, but their market cap remains attractive at $152 billion. The company’s strong margins are set to expand over the coming years, which makes them an attractive business, especially at time when the U.S. and the globe is in an energy crunch.
Risk:
Execution matters here…Eaton must remain competitive against other electrical products companies. The AI / data center spending cycle must also remain robust…if companies and governments begin to scale back, Eaton’s revenue forecasts may change, so we’ll have to monitor the industry as a whole.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around. Wanna see real-time market updates? Learn more here.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
Hyper Stocks and its contributors may hold positions in some of the securities or assets mentioned above. These positions are subject to change without notice. Any opinions expressed reflect current views at the time of writing and are not guarantees of future performance. Past performance does not guarantee future results.