Qualcomm (NASDAQ:QCOM) Stock Price Down 1.6% - Time to Sell?

Key Points

• Qualcomm shares fell 1.6% to $184.84 in mid-day trading, with volume 39% below the average daily level.
• The company’s expanded partnership with Amazon to develop AI data-center chips and connectivity solutions is strengthening its hyperscale growth outlook, alongside progress in automotive and AI networking.
• Analysts remain mixed, with a consensus “Hold” rating and $204.10 price target. Qualcomm recently reported $9.95 billion in quarterly revenue, announced a $0.92 quarterly dividend, and continues to trade at a relatively modest valuation compared with some AI semiconductor peers.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) dropped 1.6% during mid-day trading on Wednesday . The company traded as low as $183.37 and last traded at $184.84. 9,506,704 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 15,534,435 shares. The stock had previously closed at $187.80.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Amazon AI partnership strengthens the data-center narrative. Qualcomm’s multigenerational collaboration with Amazon to develop customized AI data-center silicon and optical-connectivity solutions is being viewed as a potential entry point into the hyperscaler market. Amazon may also receive warrants to purchase up to $4 billion of Qualcomm stock, aligning the companies’ interests. Why Qualcomm Is Up After New Amazon AI Chip Deal
• Positive Sentiment: Analysts see broader growth opportunities. StoneX reiterated a Buy rating and a $270 price target, citing Qualcomm’s expanding data-center ambitions and growing exposure to hyperscale customers. Investors are also encouraged by progress in automotive chips and the company’s partnership with Cornelis Networks on AI networking and programmable compute infrastructure. Qualcomm Stock Rises as AWS Deal Boosts Data Center Outlook
• Positive Sentiment: Valuation remains a supporting factor. Despite a roughly 30% rally since August, Qualcomm continues to trade at a relatively modest valuation compared with some AI-related semiconductor companies. Optimists argue that successful execution in AI infrastructure and automotive could cause the discount to narrow. Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on QCOM shares. Sanford C. Bernstein reiterated a "market perform" rating on shares of Qualcomm in a report on Wednesday, September 9th. HSBC restated a "hold" rating on shares of Qualcomm in a report on Wednesday, July 15th. Robert W. Baird set a $400.00 price objective on Qualcomm in a report on Thursday, July 30th. Lake Street Capital cut Qualcomm to a "hold" rating in a report on Thursday, June 25th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $235.00 price objective on shares of Qualcomm in a research report on Wednesday, September 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Qualcomm currently has an average rating of "Hold" and a consensus price target of $204.10.

Qualcomm Stock Performance

The company's 50-day moving average price is $168.42 and its 200 day moving average price is $171.58. The stock has a market capitalization of $194.12 billion, a PE ratio of 21.39, a PEG ratio of 3.75 and a beta of 1.68. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

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

Qualcomm Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.0%. Qualcomm's dividend payout ratio is 42.59%.

Insider Transactions at Qualcomm

In related news, CAO Patricia Y. Grech sold 625 shares of Qualcomm stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $162.85, for a total transaction of $101,781.25. Following the sale, the chief accounting officer directly owned 208 shares in the company, valued at $33,872.80. The trade was a 75.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of the company's stock in a transaction on 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 sale, the executive vice president directly owned 36,535 shares in the company, valued at approximately $5,372,106.40. The trade was a 8.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 11,533 shares of company stock valued at $1,924,969. Corporate insiders own 0.05% of the company's stock.

Institutional Trading of Qualcomm

A number of hedge funds have recently modified their holdings of the business. JFS Wealth Advisors LLC raised its stake in Qualcomm by 3.4% during the 2nd quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company's stock valued at $295,000 after buying an additional 53 shares during the last quarter. Wall Street Financial Group Inc. boosted its stake in shares of Qualcomm by 1.9% in the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company's stock worth $564,000 after buying an additional 57 shares during the last quarter. Sunbeam Capital Management LLC grew its holdings in shares of Qualcomm by 3.7% in the second quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company's stock worth $303,000 after acquiring an additional 58 shares during the period. Basepoint Wealth LLC increased its position in Qualcomm by 1.8% during the first quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company's stock valued at $429,000 after acquiring an additional 59 shares during the last quarter. Finally, Five Oceans Advisors increased its position in Qualcomm by 3.3% during the second quarter. Five Oceans Advisors now owns 1,827 shares of the wireless technology company's stock valued at $338,000 after acquiring an additional 59 shares during the last quarter. Institutional investors own 74.35% of the company's stock.

About Qualcomm

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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