Qualcomm (NASDAQ:QCOM) Stock Price Down 5.8% - Time to Sell?

Key Points

• Qualcomm shares fell 5.8% to $177.72 in heavy trading, as a recent rally unwound and investors took profits amid broader semiconductor-sector volatility.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $204.10. Concerns include weakening handset demand, declining Apple-related revenue and whether Qualcomm’s AI expansion can offset pressure on its core business.
• Qualcomm’s latest quarterly revenue exceeded estimates, but EPS missed slightly and revenue declined 4% year over year. The company maintains a quarterly dividend of $0.92 per share, representing a 2.1% yield.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares dropped 5.8% on Friday . The company traded as low as $175.97 and last traded at $177.72. Approximately 54,296,814 shares traded hands during mid-day trading, an increase of 245% from the average session volume of 15,730,031 shares. The stock had previously closed at $188.71.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm CEO Cristiano Amon is reportedly expected to attend the September 24 Trump-Xi summit alongside leaders from OpenAI and NVIDIA. Potential discussions involving AI standards, chip access and development could improve Qualcomm’s visibility in the AI ecosystem. Trump-Xi Dinner Next Week Brings AI Titans To The Table
• Positive Sentiment: Some coverage continues to view QCOM as inexpensive at roughly 22 times earnings compared with other semiconductor stocks. Qualcomm’s expansion from smartphone chips into AI infrastructure could eventually eliminate that valuation discount if the strategy gains traction. Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off
• Neutral Sentiment: Analyst sentiment remains mixed: the consensus rating is “Hold,” while Zacks Research downgraded the stock to “Strong Sell.” The conflicting views suggest investors are weighing Qualcomm’s cash generation and valuation against slowing fundamentals. Qualcomm Receives Consensus Rating of Hold
• Negative Sentiment: Investors are questioning Qualcomm’s AI pivot, with analysts arguing that the opportunity may not yet offset weakness in its core handset business. Concerns include rising semiconductor costs, unfavorable product mix, weaker phone demand and an expected decline in Apple-related revenue. Qualcomm’s AI Pivot Has a Problem
• Negative Sentiment: The immediate decline appears to be partly a reversal of the recent rally, as traders lock in gains after QCOM’s strong monthly advance. The stock also remains vulnerable to broad semiconductor-sector volatility and profit-taking. Qualcomm Drops as Past Month’s Rally Unwinds

Analysts Set New Price Targets

QCOM has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Qualcomm in a research report on Wednesday, June 24th. Evercore set a $159.00 price objective on shares of Qualcomm in a research report on Thursday, July 30th. Citigroup reduced their target price on Qualcomm from $198.00 to $175.00 and set a "neutral" rating on the stock in a report on Wednesday, July 29th. The Goldman Sachs Group set a $160.00 price target on Qualcomm in a research note on Thursday, July 30th. Finally, Guggenheim set a $200.00 price objective on Qualcomm in a research report on Monday, June 22nd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $204.10.

Qualcomm Stock Down 5.8%

The stock has a market capitalization of $186.65 billion, a price-to-earnings ratio of 20.57, a price-to-earnings-growth ratio of 3.85 and a beta of 1.68. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46. The stock has a 50 day moving average price of $168.34 and a 200 day moving average price of $172.19.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. During the same period in the prior year, the company earned $2.77 EPS. The business'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. As a group, analysts forecast that Qualcomm Incorporated will post 7.74 EPS for the current year.

Qualcomm Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a dividend of $0.92 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.1%. Qualcomm's dividend payout ratio (DPR) is presently 42.59%.

Insider Transactions at Qualcomm

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the company's stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $182.85, for a total value of $457,125.00. Following the sale, the executive vice president owned 18,184 shares in the company, valued at approximately $3,324,944.40. The trade was a 12.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 625 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $162.85, for a total value of $101,781.25. Following the completion of the sale, the chief accounting officer directly owned 208 shares of the company's stock, valued at approximately $33,872.80. The trade was a 75.03% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 11,533 shares of company stock worth $1,924,969. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Your Advocates Ltd. LLP bought a new position in Qualcomm during the 1st quarter valued at approximately $26,000. Caitong International Asset Management Co. Ltd boosted its holdings in Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after acquiring an additional 170 shares in the last quarter. Commonwealth Retirement Investments LLC bought a new stake in Qualcomm in the fourth quarter worth $32,000. ABS Investment Management LLC purchased a new stake in shares of Qualcomm in the second quarter worth $34,000. Finally, ABS Direct Equity Fund LLC bought a new position in shares of Qualcomm during the second quarter valued at $34,000. 74.35% of the stock is owned by institutional investors and hedge funds.

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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