Who doesn’t dream of landing the next Nvidia (NASDAQ:NVDA)? But with an eye on value and potential, Qualcomm (NASDAQ:QCOM) shines as a promising contender. Investing in QCOM stock opens the gateway to the thriving artificial intelligence hardware realm, without the wild chase of an already stratospheric stock like Nvidia.

Qualcomm stock offers more than just a stake in a growing sector. It also provides a solid dividend and a share in the success of a consistently profitable company. It might be time to consider adding Qualcomm shares to your portfolio before they take off like NVDA did.

Embrace Global Reach With QCOM Stock

Qualcomm’s influence knows no bounds. For instance, Qualcomm takes the lead in pioneering innovation in emerging markets, partnering with tech ecosystems in Vietnam, Taiwan, and Africa.

Not stopping there, Qualcomm collaborates with logistics startup Airspace Technologies to extend its footprint in Malaysia, Vietnam, and Singapore. Moreover, a partnership with German telecommunications giant Deutsche Telekom (OTCMKTS:DTEGY) aims to develop a futuristic AI-driven smartphone concept, shifting the focus from apps to AI for catering to user requirements.

The recent unveiling of new chips and AI models at the 2024 Mobile World Congress in Spain underscores Qualcomm’s commitment to AI hardware. Qualcomm’s CFO and COO Akash Palkhiwala asserts confidently that the company’s chips will lead the way in AI and large language model deployment.

Qualcomm: A Profitable Gem Without Overvaluation

Nvidia often steals the limelight with its stellar earnings performance. But what about Qualcomm? Qualcomm boasts a track record of outperforming Wall Street’s expectations quarterly. In fact, the company’s results for the first quarter of fiscal 2024 surpassed analysts’ forecasts on both revenue and earnings.

While dabbling in Nvidia stock could be rewarding, Qualcomm offers a more attractive proposition. Not only does Qualcomm provide access to the AI component industry, but it also boasts a nearly 2% annual dividend yield, compared to Nvidia’s meager 0.02% yield. As for value seekers, Qualcomm’s trailing-12-month P/E ratio of 22.51x stands favorably against the sector median of 29.5x and Nvidia’s lofty 66.31x P/E ratio.

QCOM Stock: A Companion to NVDA Stock

It’s not about pitting one against the other. The smart move would be a balanced holding of both Nvidia and Qualcomm stocks. Both firms excel in the AI hardware sector, with Qualcomm offering an expanding global presence and an appealing combination of value and yield. So, it might be wise to consider complementing your NVDA holdings with an equal allocation to QCOM.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.