Why This Underdog Semiconductor Stock Is Still a Top Pick at Bernstein

Combined with innovations in battery storage and renewables, the semiconductor sector remains future-focused, particularly thanks to the innovations of industry leaders like Nvidia (NVDA) and Broadcom (AVGO). If you missed the boat on these two success stories, underdogs like Qualcomm (QCOM) also offer opportunity as potential turnarounds.

Bernstein analysts named NVDA and AVGO their top picks for semiconductor stocks heading into the new year. But they also highlighted Qualcomm as a rising star. The investment bank sees promise in Qualcomm's strategic focus on Edge AI and the PC market. Analyst Stacy Rasgon pointed to the company's extensive product portfolio and innovation pipeline as key drivers of long-term growth, stating, "We are in good shape to wait.”