Qualcomm (NASDAQ:QCOM) Stock Price Up 1.3% - Here's Why

Key Points

• Qualcomm shares rose 1.3% after news that Amazon could purchase up to $60 billion in Qualcomm products and services through 2036, including AI data-center processors and optical connectivity technology.
• The Amazon partnership strengthens Qualcomm’s data-center diversification strategy and could reduce reliance on the handset market, though initial revenue is not expected until fiscal 2027 and execution remains a key risk.
• Analyst sentiment remains cautious: Qualcomm has a consensus “Hold” rating with a $204.45 price target. Investors also face potential dilution of about 2.2% from warrants, while the company continues to offer a quarterly dividend of $0.92 per share.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) rose 1.3% during mid-day trading on Wednesday . The stock traded as high as $180.86 and last traded at $176.40. Approximately 14,748,050 shares changed hands during mid-day trading, a decline of 5% from the average daily volume of 15,596,947 shares. The stock had previously closed at $174.09.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Amazon may purchase up to $60 billion of Qualcomm products and services through 2036. The agreement includes warrants for up to 25 million QCOM shares, with most vesting tied to AWS purchasing milestones, giving Qualcomm a high-profile hyperscaler customer and greater visibility into future demand. Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal
• Positive Sentiment: The partnership supports AWS’s effort to reduce AI-inference costs with energy-efficient custom silicon. Qualcomm will also supply optical connectivity technology capable of supporting high-bandwidth data-center networks, broadening the opportunity beyond processors. Initial revenue is expected in Qualcomm’s fiscal first quarter of 2027. Qualcomm Announces Multi-Generational Product Collaboration with Amazon
• Positive Sentiment: Investors and analysts view the deal as evidence that Qualcomm’s data-center strategy is becoming commercially credible, potentially diversifying the company from a slowing handset market. Rosenblatt Securities reaffirmed its Buy rating and set a $235 price target. Rosenblatt Securities Qualcomm price target
• Neutral Sentiment: Management continues to target $15 billion in annual data-center revenue by fiscal 2029, but investors will need to track product shipments and early revenue recognition beginning in fiscal 2027. Jim Cramer called the partnership significant while noting that execution milestones remain important. Cramer Says Qualcomm’s Amazon Collaboration Gives Stalled Stock Something Special to Point At
• Negative Sentiment: The warrants could eventually dilute existing shareholders by roughly 2.2%, and the $60 billion purchasing opportunity extends over a decade rather than immediately boosting quarterly results. Qualcomm also remains exposed to handset weakness and competition from established data-center chip suppliers.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on QCOM shares. Cantor Fitzgerald reduced their price target on Qualcomm from $200.00 to $165.00 and set a "neutral" rating on the stock in a report on Monday, July 27th. Craig Hallum downgraded Qualcomm from a "buy" rating to a "hold" rating in a research report on Thursday, June 25th. KeyCorp reiterated a "sector weight" rating on shares of Qualcomm in a research note on Wednesday. Royal Bank Of Canada lifted their target price on Qualcomm from $160.00 to $180.00 and gave the stock a "sector perform" rating in a research report on Wednesday. Finally, Morgan Stanley lowered their target price on shares of Qualcomm from $231.00 to $220.00 and set an "equal weight" rating for the company in a research note on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, twenty-one have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $204.45.

Qualcomm Price Performance

The firm has a fifty day moving average of $168.43 and a two-hundred day moving average of $170.26. The stock has a market capitalization of $185.26 billion, a P/E ratio of 20.42, a P/E/G ratio of 3.52 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.

Qualcomm (NASDAQ:QCOM - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing the consensus estimate of $2.23 by ($0.02). The business had revenue of $9.95 billion during 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%. The company's revenue for the quarter was down 4.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, analysts predict that Qualcomm Incorporated will post 7.74 EPS for the current year.

Qualcomm Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be paid a $0.92 dividend. This represents a $3.68 annualized dividend and a yield of 2.1%. The ex-dividend date is Thursday, September 3rd. Qualcomm's payout ratio is 42.59%.

Insiders Place Their Bets

In other Qualcomm news, EVP Akash Palkhiwala sold 2,500 shares of the stock in a transaction dated Tuesday, July 14th. The shares were sold at an average price of $180.81, for a total transaction of $452,025.00. Following the completion of the sale, the executive vice president directly owned 23,184 shares of the company's stock, valued at approximately $4,191,899.04. This represents a 9.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Grech sold 625 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the completion of the sale, the chief accounting officer owned 208 shares of the company's stock, valued at approximately $33,872.80. This trade represents a 75.03% 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. Over the last ninety days, insiders sold 11,533 shares of company stock worth $1,961,219. 0.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

A number of large investors have recently modified their holdings of the business. Your Advocates Ltd. LLP purchased a new position in shares of Qualcomm in the first quarter worth $26,000. Caitong International Asset Management Co. Ltd grew its holdings in shares of Qualcomm by 17,000.0% during the fourth 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 shares of Qualcomm in the 4th quarter valued at $31,000. Commonwealth Retirement Investments LLC acquired a new position in shares of Qualcomm in the 4th quarter valued at $32,000. Finally, ABS Investment Management LLC purchased a new position in Qualcomm in the 2nd quarter worth $34,000. Hedge funds and other 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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