We recently compiled a list of the 10 Cheap Technology Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other cheap tech stocks.

It seems that technology stocks have had a tough start to 2025. On March 4, 2025, CNBC reported that since President Donald Trump took office in January, the S&P 500 technology sector has dropped 7.5%. Tech stocks have slumped largely due to new tariffs that have set off a trade war and added fuel to the risk-off sentiment on Wall Street.

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Economists had cautioned that tariffs could lead to a rise in inflation and create global economic disruptions. Many leading tech companies assemble and manufacture products outside the US and as a result of the tariffs these companies could see manufacturing costs rise.

Semiconductor stocks have also been hit hard. On March 3, Trump cleared the way for new 25% tariffs on imports from Mexico and Canada and smashed hopes of a potential last-minute deal. According to the US President, there was “no room left” for further negotiations after weeks of talks. Trump also put an additional 10% tariff on Chinese imports.

In response, Canada said it would impose retaliatory tariffs. Mexico said it will be looking to announce a plan on Sunday. China retaliated with tariffs of up to 15% on some US goods. These developments have added to the uncertainty surrounding the tech sector.

The tech sector has experienced a decline due to economic uncertainty and trade tensions and this might present buying opportunities for some investors. Despite current challenges, some tech stocks show strong potential for growth.

Methodology

To compile our list of the 10 cheap tech stocks to buy according to hedge funds, we used the Finviz stock screener and Yahoo Finance. To find cheap tech stocks, we looked for stocks with a forward P/E ratio of less than 20. We sorted our results based on market capitalization and picked the top 25 technology companies trading at under 20 times their forward earnings as of March 3, 2025. Next, we focused on the top 10 cheap tech stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 10 cheap tech stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A technician testing the latest 5G device, demonstrating the company's commitment to innovation.

QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E: 13.55

Number of Hedge Fund Holders: 79

QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational technology corporation that ranks among the best cheap tech stocks to buy. The company designs and develops processors, modems, radio frequency (RF) systems, 5G, 4G and legacy connectivity solutions, and optimized software. QUALCOMM Incorporated (NASDAQ:QCOM) is a global leader in wireless technology and it is known for pioneering advancements in 3G, 4G, and 5G technologies. The company’s wireless connectivity solutions are used in smartphones, laptops, IoT devices, and vehicles. It has 170 offices in more than 30 countries around the world.

The company is making strategic moves to maintain leadership in wireless technologies by integrating advanced AI capabilities into its platforms to enhance user experiences and drive transformation across industries. On March 3, QUALCOMM Incorporated (NASDAQ:QCOM) unveiled advancements in 5G and AI at MWC Barcelona 2025. The company announced the Qualcomm X85 5G Modem-RF, its eighth-generation 5G modem-to-antenna solution and fourth-generation AI-powered 5G connectivity platform, which sets new standards for connectivity in Android smartphones. This advanced platform can achieve peak download speeds of up to 12.5 Gbps and supports both sub-6 GHz and mmWave bands for seamless streaming, gaming, and downloads. With an enhanced Qualcomm 5G AI processor featuring a hardware tensor accelerator, the X85 improves speed, efficiency, coverage, and power consumption through AI-driven optimizations. QUALCOMM Incorporated (NASDAQ:QCOM) also announced the world’s first 5G Advanced fixed wireless access platform. The company further highlighted its focus on AI by demonstrating agentic and multimodal AI experiences across Snapdragon-powered devices such as smartphones, PCs, and smart glasses.

Overall, QCOM ranks 5th on our list of the cheap tech stocks to buy according to hedge funds. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.