Davy
Small-Cap Investor, Archetype-Research, Undercovered Companies & Data-Center Supply Chains
Qualcomm is the favorite winner as Meta's VR glasses, coming in spring 2027, bring VR close to mass adoption, with Qualcomm supplying CPU, GPU and battery management. Meta solved the clunkiness of earlier headsets, putting VR near the early-majority stage of the S-curve, and VR glasses could eventually be as big as smartphones. Qualcomm also has many other tailwinds, including edge AI. x.comÂ
Meta and Apple are in a long-term race to build practical VR glasses that could break the iPhone's two-decade stranglehold in the 2030s. Meta started light and comfortable but must add orders of magnitude more power; Apple started with the powerful but bulky Vision Pro, essentially a prototype, and must shrink it. They may meet in the middle in the early 2030s. Meta's new glasses are a big leap forward, but this is still the first inning, and owning both makes sense. x.com x.com x.comÂ
Meta is an attractive investment on its current valuation and strong core business, even though its semiconductor engineering looks unfavorable. Making money as an investor means looking beyond the narrow lens of engineering. x.comÂ
Qualcomm is hurt by plunging consumer smartphone sales. Counterpoint Research's preliminary estimate puts global Q3 2026 shipments down 20% year over year, the lowest Q3 since 2012. Apple outperformed Android but was still down. x.com x.comÂ
Qualcomm could rerate from a handset chipmaker into an AI infrastructure story now that Amazon is co-developing multiple generations of inference silicon with it. As AI shifts toward stacks built around workloads, power and cost, Qualcomm need not beat Nvidia, only help optimize around the GPU. Amazon and Qualcomm are also working on 1.6T links using Qualcomm SerDes and optical DSPs, entering a space led by Broadcom and Marvell. Deployment volumes and further design wins would confirm it. x.comÂ
Qualcomm looks undervalued among tech stocks given its opportunities in physical AI, CPUs and an emerging data-center market. x.comÂ
Qualcomm is weak in its own capabilities while facing longer phone replacement cycles and pricier memory. Its other growth narratives are a very long way off. x.comÂ
Snap's smart glasses will likely only hurt its core business. Unlike Meta, Snap cannot afford to invest billions in bets that may never pay off, and Meta should end up with a near-monopoly on smart glasses. x.comÂ
Qualcomm has little downside with Amazon having come in as an investor at around $160 a share. Investors give it almost no credit for AI, wearables, robotics and auto, and those businesses can do the heavy lifting to keep the stock steady next year. x.comÂ
Qualcomm is not simply undervalued: as a pure chip designer it lacks both manufacturing and distribution to end developers, leaving it squeezed by the largest companies on earth. It sends designs to TSMC and has no vertical integration. Amazon, which has pricing power through AWS, is now using Qualcomm to design its next chip, pushing it to undercut Broadcom. Nvidia controls the CUDA developer ecosystem, so its designs will likely far outpace Qualcomm's. It could be wrong short term. x.comÂ
AI demand could drive a big run in Broadcom, IREN, Oracle, Qualcomm, Nokia and Vistra. IREN's 2 GW of uncontracted power gives it massive upside potential; Vistra's roughly 3.8 GW of Meta and Amazon agreements position it for data-center power demand. Broadcom supplies custom AI chips and networking; Oracle has $664B in backlog and a $300B OpenAI deal; Qualcomm is one of tech's most undervalued names with CPU, physical-AI and data-center exposure; Nokia is essential to AI networking. x.com x.com … Show more
