Qualcomm (NASDAQ:QCOM) Shares Up 2.1% - Here's What Happened

Key Points

• Qualcomm shares rose 2.1% to $188.71, with trading volume below its average. The rally reflects investor interest in the company’s expansion into AI data-center infrastructure, hyperscalers and automotive markets.
• Analysts remain mixed: Qualcomm has a consensus “Hold” rating and a $204.10 price target, while some view the stock as fairly valued after its sharp gains. Recent performance includes an approximately 18% monthly increase and an 80% longer-term rise.
• Near-term concerns include rising semiconductor costs, weaker handset demand, an unfavorable product mix and expected declines in Apple-related revenue. Qualcomm also narrowly missed quarterly EPS estimates, though revenue exceeded expectations and the company maintained a quarterly dividend of $0.92 per share.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price shot up 2.1% on Thursday . The stock traded as high as $191.91 and last traded at $188.71. 12,059,727 shares changed hands during trading, a decline of 22% from the average daily volume of 15,497,084 shares. The stock had previously closed at $184.84.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s push beyond smartphones into AI data-center infrastructure and hyperscaler applications is gaining investor attention. Successful expansion into these markets could diversify revenue and support long-term growth. QCOM Stock Climbs To 2-Month High As AI Data Center Push Gains Momentum
• Positive Sentiment: Despite its recent rally, Qualcomm is still viewed by some analysts as attractively valued relative to the potential of its AI and automotive businesses. A successful AI bet could cause the valuation discount to narrow. Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off
• Neutral Sentiment: The stock has gained roughly 18% over the past month and about 80% in the referenced longer-term period, prompting investors to weigh taking profits against buying for additional AI-driven upside. Qualcomm Just Rallied 18% in a Month: Take Profits, or Buy More?
• Neutral Sentiment: Another analysis describes Qualcomm as fairly priced after its substantial run, suggesting that further gains may depend on the company delivering stronger growth rather than continued multiple expansion. Qualcomm Stock Looks Fairly Priced On Its 80% Run
• Negative Sentiment: Rising semiconductor costs, weaker handset demand and an unfavorable product mix are pressuring margins. Expected declines in Apple-related revenue add to concerns about Qualcomm’s near-term earnings outlook. Qualcomm Faces Margin Pressure From Rising Costs
• Negative Sentiment: Zacks Research downgraded Qualcomm from “hold” to “strong sell,” reinforcing concerns that the recent rally may have outpaced the company’s fundamental recovery.
• Negative Sentiment: Reported insider selling has created an additional, though limited, overhang for the stock. Qualcomm Stock Price Down 1% After Insider Selling

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on QCOM shares. Oppenheimer set a $200.00 target price on shares of Qualcomm in a research note on Monday, July 27th. Guggenheim set a $200.00 price objective on shares of Qualcomm in a research report on Monday, June 22nd. Royal Bank Of Canada boosted their target price on Qualcomm from $160.00 to $180.00 and gave the company a "sector perform" rating in a research report on Wednesday, September 9th. Raymond James Financial began coverage on Qualcomm in a research note on Thursday, June 25th. They set a "strong-buy" rating for the company. Finally, Morgan Stanley reduced their target price on Qualcomm from $231.00 to $220.00 and set an "equal weight" rating on the stock in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $204.10.

Qualcomm Trading Up 2.2%

The company has a market capitalization of $198.34 billion, a PE ratio of 21.86, a price-to-earnings-growth ratio of 3.91 and a beta of 1.68. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28. The company's fifty day moving average is $168.39 and its 200-day moving average is $171.86.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing analysts' consensus estimates of $2.23 by ($0.02). The company had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. Qualcomm's revenue for the quarter was down 4.0% compared to the same quarter last year. During the same period in the previous year, the business earned $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, analysts anticipate that Qualcomm Incorporated will post 7.74 EPS for the current fiscal year.

Qualcomm Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be given a dividend of $0.92 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a yield of 1.9%. Qualcomm's dividend payout ratio is presently 42.59%.

Insider Buying and Selling

In other news, CAO Patricia Y. Grech sold 208 shares of the stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $170.00, for a total value of $35,360.00. The sale was disclosed in a document filed 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 firm's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $147.04, for a total value of $470,528.00. Following the completion of the transaction, the executive vice president owned 36,535 shares of the company's stock, valued at approximately $5,372,106.40. The trade was a 8.05% 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. Insiders sold 11,533 shares of company stock worth $1,924,969 in the last three months. Corporate insiders own 0.05% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Qualcomm in the 2nd quarter valued at $17,583,115,000. Geode Capital Management LLC boosted its stake in shares of 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 worth $4,931,968,000 after acquiring an additional 3,221,924 shares in the last quarter. Van ECK Associates Corp lifted its holdings in Qualcomm by 22.7% during the second quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company's stock valued at $3,178,872,000 after purchasing an additional 3,179,720 shares in the last quarter. Norges Bank acquired a new stake in shares of Qualcomm in the fourth quarter valued at about $2,591,056,000. Finally, Invesco Ltd. increased its stake in shares of Qualcomm by 28.1% during the fourth quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company's stock worth $2,163,030,000 after purchasing an additional 2,771,490 shares in the last quarter. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

Qualcomm Company Profile

Qualcomm Incorporated NASDAQ: QCOM is a technology company that develops wireless communications technologies, semiconductors and related intellectual property. Headquartered in San Diego, California, the company serves customers and partners worldwide across the mobile, automotive, consumer electronics and industrial markets.

Through its Qualcomm CDMA Technologies (QCT) business, Qualcomm designs and supplies integrated circuits, system software and hardware platforms. Its products include Snapdragon mobile platforms, 5G and other wireless modems, radio-frequency components, connectivity solutions, processors and artificial intelligence technologies.

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