Major Funds Are Betting Big on Qualcomm’s AI Ambitions

Qualcomm US7475251036

After a period of relative quiet compared to some high-flying AI peers, semiconductor leader Qualcomm is now capturing intense interest from sophisticated investors. A surge in activity from prominent hedge funds and large-scale institutional buyers, coupled with aggressive positioning in the derivatives market, signals a powerful shift in sentiment. This raises a compelling question: what strategic insights into Qualcomm's realignment and upcoming AI chipset roadmap might these informed players be acting upon?

The optimism extends far beyond simple equity accumulation, manifesting dramatically in the options arena. Traders recently purchased over 105,000 call options on Qualcomm stock. This volume represents a substantial 73% increase above the security's average daily trading level for such contracts.

A spike of this magnitude in call options typically indicates that market participants are positioning for a continued near-to-medium term price advance. This speculative activity aligns with the technical analysis perspective: the share price has stabilized following a recent pullback, defended key support levels, and is now attempting to establish a renewed upward trajectory.

A Legendary Investor Makes a Strategic Pivot

The current mood is perhaps best exemplified by a decisive move from David Tepper. The founder of Appaloosa Management and a highly regarded hedge fund manager dramatically increased his fund's stake in the chipmaker during the third quarter of 2025, boosting his position by a remarkable 255%.

The context of this move is particularly telling. Tepper achieved this buildup while concurrently reducing exposure to other technology giants such as Alphabet and Amazon, deliberately redirecting capital toward Qualcomm. Market observers interpret this as a calculated bet on the company's attractive valuation—its price-to-earnings ratio stands at a moderate 13.8—coupled with its significant potential in the Edge AI sector. The anticipated AI200 chips, expected in 2026, are viewed as a central catalyst for future growth.

Strategic Expansion and a Stable Institutional Base

Adding to the strategic narrative are moves indicating corporate ambition. Regulatory filings point to a potential acquisition offer for Alphawave IP Group plc. A Qualcomm subsidiary appears in relevant disclosure documents, suggesting the conglomerate is actively seeking to broaden its technology portfolio in connectivity and IP solutions.

In parallel, reports from institutional heavyweights like The Vanguard Group and Invesco show that the company's foundational institutional ownership remains stable, with positions being adjusted in the context of these broader strategic developments.

Confidence Built on Solid Fundamentals

This wave of confidence rests upon a firm fundamental foundation. Qualcomm's most recent quarterly results comfortably exceeded analyst expectations for both earnings per share and revenue. Furthermore, the company's guidance for the first quarter of fiscal year 2026 also surpassed expert forecasts.

In response, analyst firms including TD Cowen and JPMorgan have already revised their price targets upward. The confluence of robust financial performance, substantial investment from David Tepper, and aggressive positioning in the options market paints a clear picture: so-called "smart money" is betting on a sustained upward trend.

This positive dynamic is already reflected in near-term performance, with the stock posting a weekly gain of 4.62 percent.