Shares of Qualcomm Incorporated (NASDAQ:QCOM – Get Free Report) traded down 5.7% during mid-day trading on Tuesday . The stock traded as low as $192.67 and last traded at $205.42. 29,660,891 shares changed hands during trading, an increase of 83% from the average session volume of 16,219,368 shares. The stock had previously closed at $217.77.
Qualcomm News Roundup
Here are the key news stories impacting Qualcomm this week:
- Positive Sentiment: Nvidia CEO Jensen Huang publicly praised Qualcomm and told investors to “buy their stock,” which sparked after-hours buying and helped lift sentiment around QCOM. Qualcomm shares rise 2% after Nvidia CEO endorses the stock
- Positive Sentiment: Qualcomm and SLB announced a collaboration on edge AI solutions for energy operations, adding another potential growth avenue outside smartphones and reinforcing the company’s AI narrative. SLB, Qualcomm to collaborate on edge AI solutions for energy operations
- Positive Sentiment: Broader investor focus remains on Qualcomm’s upcoming AI/data-center catalysts, including its June 24 Investor Day and the new Dragonfly data-center brand, which could support a higher valuation if management delivers strong updates. Qualcomm jumps as chip stocks rebound and investors refocus on upcoming AI/data-center catalysts
- Neutral Sentiment: Recent short-interest and insider-trading data do not provide a clear fundamental signal for the stock’s move today, though they may keep some traders cautious. Qualcomm jumps as chip stocks rebound and investors refocus on upcoming AI/data-center catalysts
- Negative Sentiment: Qualcomm was hit by weakness across semiconductor stocks as investors rotated out of the group after a strong run, contributing to pressure on QCOM shares. Semiconductor shorts pile on as winning trade reverses
- Negative Sentiment: Reports that Qualcomm dropped on a ByteDance ASIC deal, alongside broader custom-silicon weakness, appear to be a key reason for the stock’s decline. Qualcomm Drops 8% on ByteDance ASIC Deal, Marvell Falls 10% as Custom-Silicon Stocks Slide
Analyst Upgrades and Downgrades
Several equities research analysts have issued reports on the company. Wells Fargo & Company downgraded Qualcomm from a “positive” rating to an “underweight” rating in a report on Friday, May 8th. Roth Mkm began coverage on Qualcomm in a report on Friday, May 8th. They issued a “buy” rating for the company. The Goldman Sachs Group started coverage on Qualcomm in a report on Monday, March 30th. They issued a “neutral” rating and a $135.00 price target for the company. Evercore set a $179.00 price objective on Qualcomm in a research report on Thursday, April 30th. Finally, Susquehanna boosted their price objective on Qualcomm from $140.00 to $160.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $181.79.
Qualcomm Stock Down 5.7%
The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The stock has a 50-day simple moving average of $178.41 and a 200-day simple moving average of $163.75. The company has a market cap of $216.51 billion, a price-to-earnings ratio of 22.33, a price-to-earnings-growth ratio of 26.75 and a beta of 1.59.
Qualcomm (NASDAQ:QCOM – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.56 by $0.09. The company had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The firm’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, analysts predict that Qualcomm Incorporated will post 7.99 EPS for the current year.
Qualcomm Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be issued a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 1.8%. This is a positive change from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm’s payout ratio is currently 40.00%.
Qualcomm announced that its Board of Directors has authorized a stock buyback plan on Tuesday, March 17th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the wireless technology company to reacquire up to 14.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.
Insider Transactions at Qualcomm
In other news, EVP Heather S. Ace sold 3,200 shares of the company’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the sale, the executive vice president owned 39,735 shares in the company, valued at $7,065,677.70. This represents a 7.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total value of $529,750.00. Following the completion of the sale, the executive vice president owned 28,184 shares of the company’s stock, valued at approximately $5,972,189.60. This trade represents a 8.15% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 19,306 shares of company stock worth $3,435,583. Corporate insiders own 0.05% of the company’s stock.
Institutional Investors Weigh In On Qualcomm
Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of Qualcomm by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 114,144,068 shares of the wireless technology company’s stock valued at $19,524,350,000 after purchasing an additional 647,076 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Qualcomm by 12.5% during the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock valued at $4,931,968,000 after purchasing an additional 3,221,924 shares during the last quarter. Wellington Management Group LLP lifted its holdings in shares of Qualcomm by 34.5% during the fourth quarter. Wellington Management Group LLP now owns 16,727,862 shares of the wireless technology company’s stock valued at $2,861,301,000 after purchasing an additional 4,290,622 shares during the last quarter. Norges Bank purchased a new stake in shares of Qualcomm during the fourth quarter valued at $2,591,056,000. Finally, Amundi lifted its holdings in shares of Qualcomm by 9.9% during the third quarter. Amundi now owns 12,671,635 shares of the wireless technology company’s stock valued at $2,136,486,000 after purchasing an additional 1,138,541 shares during the last quarter. 74.35% of the stock is owned by hedge funds and other institutional investors.
About Qualcomm
Qualcomm Incorporated is a global semiconductor and telecommunications equipment company headquartered in San Diego, California. Founded in 1985, the company is known for its development of wireless technologies and for playing a central role in the evolution of digital cellular standards, including CDMA and subsequent generations of mobile standards. Qualcomm’s business combines the design and sale of semiconductor products with a patent licensing program for wireless technologies and related intellectual property.
The company’s product portfolio includes system-on-chip (SoC) platforms marketed under the Snapdragon brand, cellular modem and RF front-end components, connectivity solutions for Wi?Fi and Bluetooth, and processors and platforms aimed at automotive, IoT, networking and edge-computing applications.
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