Qualcomm ( QCOM) is a designer and manufacturer of digital communications products. It has been given a buy rating by UBS Investment Research, primarily due to the increase in demand for Qualcomm's Snapdragon processors. With the increase in usage of LTE, bigger displays and thinner phones, Qualcomm's processors are experiencing a rise in demand. UBS does not expect the company's competitive position to be jolted despite the increase in discrete application processors offered by Intel and NVIDIA. Shares of Qualcomm are currently trading at $58 per share and are expected to reach a price target of $70, indicating a potential upside of 20%.

Qualcomm is one of the most popular stocks among hedge funds. Qualcomm introduced its new Snapdragon S4 processor for powering Windows 8 tablet devices. We expect an increase in demand for Qualcomm's processors. We are bullish about QCOM.

>>To see these stocks in action, visit the 7 UBS Stock Picks for 2012 portfolio on Stockpickr.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

If you liked this article you might like

Can CSX Catch Up to the Other Rails?

First Leg Down of United Tech; Hurricanes -- Jim Cramer's Top Thoughts

Cramer: Hurricanes Will Break the Decline of the Auto and Housing Industries

Trifecta Stocks: Bracing for the Stock Market's Own Hurricane Season

Detours Don't Deter Transports