It's been a rough year for chip-maker Qualcomm. But that hasn't stopped one trader from making what he called "the most hated tech stock out there" the third-biggest holding in his portfolio.
"Qualcomm's the ultimate show-me stock right now," David Rolfe of RiverPark Wedgewood Funds, said Wednesday on CNBC's "Squawk Alley." "Everything that could have gone wrong for Qualcomm in the past 12 to 18 months has, in fact, gone wrong. But we believe we've seen the worst of the revenue declines. We love the risk-reward of Qualcomm."
Against a backdrop of stock market volatility and concerns about Chinese economic growth, shares of technology companies have seen particularly wild swings over the past two weeks. China's economy has also weighed heavily on Qualcomm, which trimmed the outlook in its semiconductor business based on reduced sales and demand there, the company said in a July quarterly earnings report.
But Rolfe said he sees the stock, currently trading around $55, rising to $70 or $80 in the next 18 to 24 months.
"There are a lot of stocks that have corrected more than the major indices," Rolfe said. "We're getting giddy at Wedgewood, picking up some bargains."
Shares of the company, which makes chips, modems, software and processors for everything from wearables to cars, are trading down more than 26 percent over the past year. That's in comparison to Wedgewood's top two holdings: Berkshire Hathaway's B shares, down almost 5 percent over the past year, and Apple, up almost 7 percent.
In addition to the most recent market rout, Qualcomm announced earlier this year it would cut up to 15 percent of its workforce, after Bloomberg reported Samsung's mobile phones may no longer use Qualcomm chips.
Shares of the technology company were downgraded by several analysts in 2015. Qualcomm's stock was trading up 0.75 percent midday Wednesday, on the day the markets traded up more than 1 percent.
Rolfe isn't the only contrarian that's bullish on Qualcomm. Analyst Ronnie Moas of Standpoint Advisors said he upgraded Qualcomm from "hold" to "buy" on Aug. 24. Moas said Qualcomm's dividend and low exposure to macroeconomic shocks makes it a good deal.
"I always have a shopping list of names I want to buy on sale, and Qualcomm came really close where I wanted," Moas said.