Qualcomm Doesn't Look Cheap Next to Its AI Chip Peers. Here's Why.

Qualcomm (NASDAQ: QCOM) isn't often mentioned in the same breath as AI leaders like Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). It's one of the world's largest mobile chipmakers. Still, its AI-oriented chips haven't attracted nearly as much attention as Nvidia's data center GPUs or Broadcom's custom AI accelerators for hyperscalers.

Qualcomm's stock has still risen 40% over the past five years, but shares of Nvidia and Broadcom have rallied about 1,000% and 630%, respectively. However, Qualcomm still doesn't look cheap relative to those AI leaders for three simple reasons.

Image source: Getty Images.

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