Why Qualcomm (QCOM) Is Moving Beyond Smartphones

Aristotle Capital Management, LLC's latest investor letter reveals that their Value Equity Fund underperformed in Q2 2026, with a 4.32% return compared to the Russell 1000 Value Index's 13.87% and the S&P 500's 15.20%. The fund's underperformance is largely attributed to limited exposure to AI infrastructure spending, which has created bottlenecks in processors and memory.

Despite this setback, the letter highlights QUALCOMM Incorporated (NASDAQ:QCOM) as the largest contributor to the fund's performance for the quarter. QUALCOMM specializes in wireless technologies and semiconductor solutions for smartphones, automotive systems, and connected devices. The company's long-term diversification strategy includes AI-enabled PCs, industrial applications, and data center computing.

While some hedge funds reduced their holdings of QUALCOMM in Q1 2026, the company remains an important player in the AI and connected computing market.