Qualcomm (NASDAQ:QCOM) Trading Down 2.1% – Here’s Why

Qualcomm Incorporated (NASDAQ:QCOM) traded down 2.1% on Tuesday . The company traded as low as $183.50 and last traded at $184.79. Approximately 21,568,247 shares changed hands during trading, an increase of 27% from the average daily volume of 17,038,701 shares. The stock had previously closed at $188.72.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm is being highlighted for a bigger AI infrastructure opportunity, with recent coverage emphasizing its Dragonfly C1000 server CPU, a goal of $15 billion in data center revenue by fiscal 2029, and deployments with blue-chip customers such as Meta Platforms and Microsoft. Overclocking Qualcomm: Rewiring the AI Compute Market
• Positive Sentiment: Investor enthusiasm also got a boost from commentary that Qualcomm “now has the pieces to compete across the AI stack,” reinforcing the view that its long-term growth story is expanding beyond handsets. Qualcomm Now Has The Pieces To Compete Across The AI Stack: Analyst
• Positive Sentiment: Analysts and price-prediction pieces continue to frame QCOM as undervalued relative to its AI and data-center potential, which may be supporting buying interest. Qualcomm Price Prediction: The Forecast Is Far More Bullish Than Analysts
• Neutral Sentiment: ByteDance is reportedly targeting an in-house CPU for 2027, while partnering with Qualcomm on the effort, which could modestly reinforce Qualcomm’s relevance in custom-chip development without providing an immediate revenue impact. ByteDance targets in-house CPU for 2027 deployment, partners with Qualcomm: report
• Neutral Sentiment: Qualcomm is drawing attention from traders and investors, and Zacks notes the stock has been heavily watched recently; this reflects interest more than a clear operational catalyst. Here is What to Know Beyond Why QUALCOMM Incorporated (QCOM) is a Trending Stock
• Neutral Sentiment: Bernstein reportedly assigned Qualcomm a Hold rating, signaling a more cautious stance from at least one sell-side shop. Qualcomm (QCOM) Gets a Hold from Bernstein
• Negative Sentiment: One report says Qualcomm’s possible purchase of Tenstorrent looks less likely, reducing speculation around a potentially strategic AI-chip acquisition. Qualcomm’s Tenstorrent Deal Looks Less Likely

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Evercore set a $179.00 price target on Qualcomm in a research report on Thursday, April 30th. Argus set a $220.00 price objective on Qualcomm in a research report on Friday, May 1st. Robert W. Baird set a $300.00 price objective on Qualcomm in a research note on Friday, May 1st. Summit Insights raised Qualcomm from a “hold” rating to a “buy” rating in a report on Thursday, April 30th. Finally, Lake Street Capital cut Qualcomm to a “hold” rating in a research note on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $220.45.

Qualcomm Stock Down 2.1%

The company has a market cap of $194.77 billion, a P/E ratio of 20.09, a P/E/G ratio of 5.64 and a beta of 1.59. The company’s 50-day moving average is $202.17 and its two-hundred day moving average is $167.88. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61.

Qualcomm (NASDAQ:QCOM) last released its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business had revenue of $10.60 billion for the quarter, compared to analysts’ expectations of $10.59 billion. During the same period in the prior year, the firm posted $2.85 EPS. The firm’s quarterly revenue was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, equities analysts predict that Qualcomm Incorporated will post 7.96 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were paid a $0.92 dividend. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Thursday, June 4th. Qualcomm’s dividend payout ratio (DPR) is presently 40.00%.

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

Insiders Place Their Bets

In related news, CAO Patricia Y. Grech sold 829 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total transaction of $167,267.33. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the completion of the sale, the chief executive officer owned 197,568 shares of the company’s stock, valued at $35,562,240. The trade was a 4.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 21,806 shares of company stock valued at $3,928,958. 0.05% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. Norges Bank purchased a new stake in Qualcomm in the fourth quarter worth approximately $2,591,056,000. Wellington Management Group LLP raised its stake in Qualcomm by 141.8% during the 3rd quarter. Wellington Management Group LLP now owns 12,437,240 shares of the wireless technology company’s stock valued at $2,069,059,000 after buying an additional 7,292,783 shares during the last quarter. Geode Capital Management LLC raised its stake in Qualcomm by 12.5% during the 4th 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 buying an additional 3,221,924 shares during the last quarter. Invesco Ltd. lifted its holdings in shares of Qualcomm by 28.1% during the 4th quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company’s stock valued at $2,163,030,000 after buying an additional 2,771,490 shares during the period. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Qualcomm by 36.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 6,552,427 shares of the wireless technology company’s stock valued at $1,090,025,000 after buying an additional 1,764,252 shares during the period. 74.35% of the stock is 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.