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Qualcomm: Undervalued Chip Stock in Breakout Uptrend 
As we start into the back half of July, tech giant Qualcomm Inc. (NASDAQ: QCOM) continues to build on an uptrend that began quietly in April. It's not flashy, but this sustained rally matters for a stock that's spent much of the past couple of years frustrating investors with choppy, sideways action. They haven't yet reclaimed their highs from February 2025, but shares are still up close to 30% from April's lows. The move is driven by a healthy pattern of higher highs and higher lows—a classic bullish setup likely catching the attention of technically minded investors. This is the kind of strength that rewards patience. Qualcomm has never been the type of stock that races ahead of the pack, but it holds some solid potential for longer-term gains for those who can stomach the slower pace. And as we head into its next earnings report at the end of the month, the setup looks compelling. Why Valuation Matters Perhaps the most notable aspect of Qualcomm's current standing is its valuation, particularly when compared to its peers. The company is trading at just 15x earnings, a figure Wall Street is more accustomed to seeing with slow-moving defensive or cyclical stocks, not growth-focused tech names. Let's step back for a moment. The price-to-earnings (P/E) ratio is one of the most commonly used valuation metrics. It compares a company's current share price to its earnings per share and produces a single number for investors to consider against other stocks in the space. A lower P/E ratio, for example, would suggest a stock is cheaper relative to its peers, at least on paper. That's why Qualcomm's P/E of 15 stands out. It looks like a bargain next to NVIDIA Corp's (NASDAQ: NVDA) at 55 and Advanced Micro Devices Inc's (NASDAQ: AMD) at around 117. By that measure, Qualcomm is one of the most affordable large-cap semiconductor companies available right now. This can be a very good thing. Buying into NVIDIA today, after its meteoric rise back to all-time highs, can feel like chasing. With Qualcomm, however, you get the sense you could be early to the party, rather than late. Cheap Doesn't Always Mean Undervalued Of course, low valuations aren't always a good thing, and sometimes they can signal doubt. When Wall Street isn't willing to assign a higher multiple, it often means there's a lack of conviction in the company's growth trajectory or its competitive positioning. That appears to be the case with Qualcomm. Despite solid earnings beats in recent quarters, the market still isn't rewarding them with anything like the eye-watering rallies the likes of NVIDIA have seen. Citi's reiteration of its Neutral rating last week underscores this sentiment. The firm held back on giving Qualcomm a full Buy rating and seems to be awaiting stronger signals that Qualcomm can deliver on its potential. In this context, buying Qualcomm could be more of a contrarian trade than it might first appear. Investors are effectively betting that the market is underestimating its upside and that continued execution will eventually force a re-rating. Bitcoin is breaking out — and one state just created a Strategic Crypto Reserve.
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