Qualcomm Incorporated (QCOM): Bridgewater's Stock Pick with Huge Upside Potential

Ray Dalio's Bridgewater Associates has a stock portfolio with huge upside potential, including QUALCOMM Incorporated (QCOM). The stock market was in an upside trend until February 2025, but Dalio predicted potential risks of the Trump presidency. Trump's tariffs have caused market corrections, and Dalio believes the monetary, domestic political, and international world orders are breaking down due to unsustainable fundamentals.

Ray Dalio, the founder of Bridgewater Associates, has long been known for his prescient insights into the financial markets. His latest warnings about the U.S. economy and global order, delivered in the face of the Trump presidency and its tariff policies, have sparked renewed interest in his investment strategies. Dalio's recent statements underscore the potential risks and opportunities investors should be aware of, particularly with regard to the stock market and companies like QUALCOMM Incorporated (QCOM).

Dalio, who accurately predicted the 2008 financial crisis, has expressed concern that the U.S. is nearing a critical inflection point and could face something worse than a recession if current trends continue. He attributes this to rising debt, political instability, and Trump's tariffs, which have disrupted the global order. In an interview on NBC News’ Meet the Press, Dalio cautioned that the U.S. economy is close to a recession and that the current situation could lead to a collapse of the dollar and increased global tensions, drawing parallels to the instability of the 1930s [1].

Dalio's warnings carry significant weight given his track record. Bridgewater Associates accurately predicted the 2008 financial crisis by identifying embedded risks and a looming credit crunch before most on Wall Street. Although Dalio misfired on a 2023 U.S. debt crisis prediction, his broader macro views continue to command attention.

Investors should also consider the impact of Trump's tariff policies on the stock market. Dalio's concerns about the monetary, domestic political, and international world orders breaking down due to unsustainable fundamentals highlight the potential for market corrections. The hedge fund manager has warned that Trump's tariffs on Chinese imports, which have been hiked to 145%, have triggered "very, very disruptive changes" in the global economy, exacerbating long-standing vulnerabilities in the U.S. fiscal and political system [1].

Despite his bleak outlook, Dalio offers a potential path forward. He urges Congress to rein in the federal budget deficit, which stands at roughly 6.3% of GDP, to avert a potential supply-demand problem for debt and to prevent the situation from worsening into something much worse than a normal recession [1].

Investors should also consider the recent stock market trends and the potential impact of Dalio's warnings on companies like QUALCOMM Incorporated (QCOM). The stock market was in an upside trend until February 2025, but Dalio predicted potential risks associated with the Trump presidency. The market corrections caused by Trump's tariffs could continue to affect QUALCOMM's stock price, as the company is heavily involved in wireless technology and could be impacted by global trade tensions.

Institutional investors have been actively buying and selling shares of QUALCOMM Incorporated (QCOM) in recent quarters. Brown Advisory Inc., for instance, increased its holdings by 22.2% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. Other institutional investors, such as Eagle Strategies LLC and TBH Global Asset Management LLC, have also increased their stakes in QUALCOMM [2].

Insider activity also provides insight into the company's stock performance. Insiders sold a total of 32,266 shares of QUALCOMM stock worth $5,267,436 over the last quarter, representing a 48.16% decrease in their position [2]. This could indicate that insiders are concerned about the company's prospects in the face of ongoing trade tensions and market volatility.

Analysts have provided mixed ratings for QUALCOMM Incorporated (QCOM). Piper Sandler, for example, reduced its price target on QUALCOMM from $205.00 to $190.00 and set an "overweight" rating on the stock. Loop Capital, on the other hand, decreased its price target from $180.00 to $155.00 and set a "hold" rating for the company [2]. The consensus rating for QUALCOMM is "Hold" with a consensus price target of $192.58, indicating a cautious outlook among analysts.

In conclusion, Ray Dalio's recent warnings about the U.S. economy and global order highlight the potential risks and opportunities investors should be aware of, particularly with regard to the stock market and companies like QUALCOMM Incorporated (QCOM). While Dalio's predictions carry significant weight, investors should also consider the recent stock market trends and the impact of Trump's tariff policies on the company's stock price. The mixed ratings and insider activity provide additional insights into QUALCOMM's prospects in the face of ongoing trade tensions and market volatility.

References:
[1] https://m.economictimes.com/markets/stocks/news/ray-dalio-who-warned-of-2008-market-crash-fears-something-worse-than-recession-amid-trump-tariffs/articleshow/120922693.cms
[2] https://www.marketbeat.com/instant-alerts/brown-advisory-inc-acquires-102259-shares-of-qualcomm-incorporated-nasdaqqcom-2025-05-05/