Madison Investments, an investment advisor, released its “Madison Sustainable Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. All equity classes experienced good results in the third quarter. During the quarter, equity markets ended on a high note, with the S&P 500 achieving a 5.89% increase, bringing the full-year performance to 22.08%. The Value outperformed growth and the market broadened outside the mega-cap tech stocks during the quarter. Against this backdrop, Madison Sustainable Equity Fund (Class Y) outperformed the S&P 500 in the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2024.

Madison Sustainable Equity Fund highlighted stocks like QUALCOMM Incorporated (NASDAQ:QCOM), in the third quarter 2024 investor letter. QUALCOMM Incorporated (NASDAQ:QCOM) develops and commercializes foundational technologies for the wireless industry. The one-month return of QUALCOMM Incorporated (NASDAQ:QCOM) was -5.01%, and its shares gained 29.51% of their value over the last 52 weeks. On November 18, 2024, QUALCOMM Incorporated (NASDAQ:QCOM) stock closed at $164.50 per share with a market capitalization of $182.76 billion.

Madison Sustainable Equity Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:

"Alphabet Inc., Eli Lilly and Company, QUALCOMM Incorporated (NASDAQ:QCOM), Microsoft Corporation, and Apple Inc. were the largest detractors. Qualcomm has given back some of its first half gains after the CFO commented at a conference that its entrance into the AI PC business would take time to ramp. We continue to see Qualcomm as well positioned with growth from AI moving into the mobile phone, from new opportunities in the Internet of Things (IoT), and within the Auto industry but will also look to future growth as they enter the PC market."

An aerial view of a bustling semiconductor production zone showcasing the company’s integrated circuits.

QUALCOMM Incorporated (NASDAQ:QCOM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held QUALCOMM Incorporated (NASDAQ:QCOM) at the end of the third quarter which was 100 in the previous quarter. In the fiscal Q4 2024, QUALCOMM Incorporated (NASDAQ:QCOM) reported non-GAAP revenues of $10.2 billion and non-GAAP earnings per share of $2.69. While we acknowledge the potential of QUALCOMM Incorporated (NASDAQ:QCOM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.