Qualcomm (NASDAQ:QCOM) Shares Up 6.2% – Should You Buy?

Shares of Qualcomm Incorporated (NASDAQ:QCOM) traded up 6.2% on Thursday . The company traded as high as $229.42 and last traded at $226.11. Approximately 46,682,079 shares changed hands during trading, an increase of 183% from the average session volume of 16,468,021 shares. The stock had previously closed at $212.97.

Key Stories Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Investor enthusiasm is building ahead of Qualcomm’s June 24 Investor Day, where management is expected to highlight AI agents, data center chips, industrial AI, physical AI, and 6G as new growth drivers.
• Positive Sentiment: Reports that Qualcomm is expanding into AI data center silicon and may have won a custom AI engagement with a hyperscale customer are reinforcing the stock’s shift from a handset story to an AI infrastructure story.
• Positive Sentiment: Qualcomm is also getting bullish attention from articles highlighting its automotive and autonomous-driving opportunities, including collaboration with QCraft and production vehicles using its SA8650P platform.
• Neutral Sentiment: Qualcomm CEO Cristiano Amon’s comments on AI agents and the idea that “agents are going to be the new app” add to the company’s AI narrative, but are more strategic than immediately financial. Article: Qualcomm CEO Cristiano Amon on the new world of AI agents
• Neutral Sentiment: Qualcomm is one of the most-watched stocks on Zacks right now, but that by itself does not provide a clear fundamental catalyst. Article: Is Trending Stock QUALCOMM Incorporated (QCOM) a Buy Now?
• Neutral Sentiment: Analyst and valuation commentary is conflicting, with some price targets still pointing higher while other coverage remains cautious, keeping the stock’s outlook mixed. Article: QUALCOMM (QCOM) Stock Could Be 34.2% Overvalued Despite Its Recent Rally
• Negative Sentiment: Some analysts warn that the latest jump may not be sustainable, noting that rising earnings-estimate revisions may not translate into more upside in the near term. Article: Strength Seen in Qualcomm (QCOM): Can Its 6.2% Jump Turn into More Strength?
• Negative Sentiment: One recent valuation piece says Qualcomm may be roughly 34% overvalued after its rally, which could pressure the stock if investors begin to focus on fundamentals rather than momentum.

Analyst Ratings Changes

Several brokerages recently weighed in on QCOM. Susquehanna lifted their price target on shares of Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Argus set a $220.00 price objective on shares of Qualcomm in a research report on Friday, May 1st. HSBC began coverage on shares of Qualcomm in a report on Friday, May 8th. They issued a “buy” rating on the stock. Royal Bank Of Canada raised their price target on Qualcomm from $150.00 to $175.00 and gave the company a “sector perform” rating in a research note on Thursday, April 30th. Finally, Roth Mkm initiated coverage on Qualcomm in a report on Friday, May 8th. They set a “buy” rating for the company. Fifteen research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, Qualcomm has a consensus rating of “Hold” and a consensus target price of $188.04.

Qualcomm Stock Performance

The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61. The stock has a 50 day simple moving average of $193.81 and a two-hundred day simple moving average of $166.77. The company has a market cap of $238.32 billion, a PE ratio of 24.58, a PEG ratio of 27.97 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM) last announced its 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 business had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period last year, the firm posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities analysts predict that Qualcomm Incorporated will post 8 EPS for the current year.

Qualcomm Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. This represents a $3.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. Qualcomm’s payout ratio is 40.00%.

Qualcomm declared that its board has approved a share repurchase plan on Tuesday, March 17th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the wireless technology company to repurchase up to 14.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling at Qualcomm

In related news, CEO Cristiano R. Amon sold 10,000 shares of the firm’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the transaction, the chief executive officer owned 197,568 shares of the company’s stock, valued at $35,562,240. This trade represents a 4.82% decrease in their ownership of the stock. The transaction 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 Heather S. Ace sold 3,200 shares of the business’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the transaction, the executive vice president owned 39,735 shares in the company, valued at $7,065,677.70. This trade represents a 7.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 21,806 shares of company stock valued at $3,928,958. Company insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of QCOM. Richardson Financial Services Inc. raised its stake in shares of Qualcomm by 90.9% during the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock worth $29,000 after purchasing an additional 80 shares during the last quarter. Torren Management LLC acquired a new stake in shares of Qualcomm during the fourth quarter worth $29,000. Caitong International Asset Management Co. Ltd grew its position in Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock valued at $29,000 after buying an additional 170 shares during the last quarter. Birchwood Financial Partners Inc. acquired a new position in Qualcomm in the 4th quarter valued at $31,000. Finally, Commonwealth Retirement Investments LLC acquired a new position in Qualcomm in the 4th quarter valued at $32,000. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

Qualcomm Company Profile

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.