The AI Stock Nobody's Talking About That Could Be This Year's Biggest Winner Qualcomm has been bogged down by the weakness in the smartphone market. However, its move into AI could unlock a solid growth opportunity. The company aims to capitalize on the growing demand for inference-focused AI chips. Smartphone chip specialist Qualcomm (QCOM+9.15%) has underperformed the broader semiconductor sector over the past three years, gaining 58% during this period, compared with the 258% gains clocked by the PHLX Semiconductor Sector index. Qualcomm's underperformance isn't surprising. While several semiconductor stocks have benefited substantially from the booming demand for artificial intelligence (AI) chips, Qualcomm's reliance on the smartphone market for the majority of its revenue has been a headwind for the stock. However, Qualcomm stock popped impressively last week following the release of the company's latest quarterly results on April 29. Let's see why that was the case and check why this semiconductor stock is an underrated gem that could be one of the best ways to capitalize on the AI sector's growth in 2026. Qualcomm's results for its fiscal 2026's second quarter (ended March 29) weren't great. Its revenue and adjusted earnings declined year over year. The company saw a significant 13% year-over-year decline in its smartphone revenue to $6 billion, which isn't surprising given the prevailing softness in this market. Qualcomm is engaging with several companies for its custom AI processors. Importantly, a large hyperscaler is reportedly in talks with Qualcomm to develop multiple generations of custom AI processors. It's worth noting that Qualcomm has been pushing the envelope in the AI chip market for some time now, and it announced a breakthrough in this space last year.#qualcomm #hyperscaler #ai_chips #investor_day #edge_ai
