This Could Be the Most Underrated Artificial Intelligence Stock to Buy Right Now

Finding a good deal on artificial intelligence (AI) stocks isn't easy these days. Many stocks are trading at inflated valuations, and they may not have much room to rise a whole lot higher. That's why buying AI stocks can be a bit risky.

But there is one potentially underrated AI stock the market has been overlooking that may be one of the better options to consider today: Qualcomm (NASDAQ:QCOM). The company recently announced a deal with Amazon (NASDAQ:AMZN), showcasing its growth potential. Here's why Qualcomm might make for a good AI stock to buy right now.

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Qualcomm partners with Amazon on custom chips

Earlier this month, Qualcomm announced that it may sell up to $60 billion in AI chips to Amazon, as the two companies have partnered together on AI-related infrastructure. Increasingly, more companies are diversifying outside of chip giant Nvidia to custom chipmakers, as that can lead to greater efficiency and reduce cost in the process. Qualcomm is a company that hopes to take advantage of that opportunity, and a close partnership with Amazon can be a big step toward doing that.

In addition to buying chips, Qualcomm has also granted warrants to Amazon (related to the chip purchases), which would allow the tech company to acquire $4 billion of its stock at a price of $161.26. A deep investment from Amazon could further incentivize other companies to rely on Qualcomm, knowing it has the backing of the leading tech giant.

While many AI stocks have been soaring in recent years due to strong demand for all things AI-related, Qualcomm's stock performance has been fairly underwhelming, and that's putting it lightly. Year to date, it's up around just 6%. And at a market cap of just under $200 billion, it's still one of the smaller companies involved in AI chip development.

Currently, it's trading at 21 times its trailing earnings, which falls to 18 based on analyst projections for future earnings. The company has struggled to generate growth, as its revenue was down 4% in its most recent quarter. However, the partnership with Amazon could unlock more growth opportunities and lead to more gains for the stock down the road.

Qualcomm's stock hasn't been skyrocketing due to AI demand, but its partnership could unlock much more potential for the business. Patient investors may want to consider buying Qualcomm's stock, as it may have much more upside than other, more highly valued AI stocks right now.