Meet the Artificial Intelligence (AI) Inference Stock That Could Deliver the Biggest Gains Over the Next 3 Years (Hint: It’s not Nvidia or Broadcom)
Publish Date: 2026-06-30 15:53:00
Source Domain: www.theglobeandmail.com
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Growing AI Data Center Market: Qualcomm is projected to tap $15 billion in data center revenue by fiscal 2029, driven by the booming AI inference workloads shifting towards cost-effective execution in data centers.
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First-Mover Advantage: Qualcomm secured a notable customer like Meta Platforms, indicating a potential for significant long-term revenue streams and positioning itself within the AI chip market amidst strong market demand.
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Valuation Appeal: Compared to its competitors like Broadcom and Nvidia, Qualcomm offers a significantly more attractive valuation, trading at 17 times forward earnings and 4.6 times sales, hinting at robust growth potential.
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Future Growth Potential: Qualcomm expects its earnings per share to soar, projecting an annual growth rate of 18.5% over the next three years, potentially pushing its stock price to $473 per share from current levels by fiscal 2029.
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Shifts in AI Computation: The move towards inference workloads, as forecasted by Deloitte, has surged demand for inference-focused chips, opening opportunities for companies providing cost-effective solutions like Qualcomm.
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Market Dynamics: Despite strong demand for AI inference chips, competition remains stiff with established players like Broadcom and market leader Nvidia, which have shown underperformance in stock gains this year due to high valuations.
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Analyst Opinions: Although the Motley Fool Stock Advisor has not shortlisted Qualcomm among its top 10 recommended stocks, the publication’s historical performance shows a substantial outperformance compared to the market average.
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Conclusion on Investment: While Qualcomm has strong growth potential, investors are encouraged to consider other recommended stocks potentially offering high returns in the near term.
