Qualcomm Inc. (NASDAQ: QCOM) stock has just had the kind of day many investors can only dream of. Having rarely gained more than 2% or 3%, shares jumped 11% on Monday, Oct. 28, to close around $187 in recent months, even on its better days. They had been up more than 20% at one point, marking their biggest single-day gain in years. The move came on the back of news that Qualcomm is entering the AI accelerator market, positioning itself to compete directly with NVIDIA Corp (NASDAQ: NVDA) and Advanced Micro Devices Inc (NASDAQ: AMD).
Qualcomm has lived in those giants’ shadow for years, despite consistently outperforming earnings expectations and trading at a comparatively cheap valuation. This latest development should finally change that dynamic. However, with gains of 70% already under its belt since this rally began in April, how should investors play it? Let’s take a closer look at the options.
