Qualcomm (NASDAQ:QCOM) Trading Up 3.2% - Should You Buy?

Key Points

• Qualcomm shares rose 3.2% to $174.09 on unusually heavy trading volume after announcing a multigenerational AI-chip and optical-connectivity collaboration with Amazon Web Services.
• The AWS partnership could provide Qualcomm with a roughly $60 billion AI infrastructure opportunity and support ambitions to reach approximately $15 billion in data-center revenue within three years, though execution and customer adoption remain uncertain.
• Investors should weigh the growth potential against risks: Amazon reportedly received warrants for about 25 million Qualcomm shares, creating possible dilution, while analysts maintain a consensus “Hold” rating with an average price target of $203.76.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price shot up 3.2% during trading on Tuesday . The stock traded as high as $183.49 and last traded at $174.09. 25,594,306 shares were traded during mid-day trading, an increase of 64% from the average daily volume of 15,593,834 shares. The stock had previously closed at $168.74.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Amazon partnership strengthens Qualcomm’s AI credentials. Qualcomm and Amazon Web Services announced a multi-generation collaboration to develop customized chips for large-scale AI data centers, initially focused on AI inference. Qualcomm will also provide optical-connectivity solutions for high-bandwidth data-center networks. The agreement gives Qualcomm a marquee customer and a potential foothold in the rapidly growing AWS AI infrastructure market. Qualcomm partners with Amazon in data center infrastructure deal
• Positive Sentiment: Investors see a potentially significant new revenue opportunity. Reports described the arrangement as a roughly $60 billion, multi-generation AI-chip opportunity, while market commentary suggested the deal could help establish a new valuation floor for QCOM by diversifying its growth away from smartphones. QCOM Stock Jumps After Amazon Inks $60B Multi-Generation AI Chip Deal
• Positive Sentiment: The announcement supports Qualcomm’s broader data-center strategy. Analyst and media coverage has highlighted the possibility that Qualcomm’s data-center revenue could reach approximately $15 billion within three years, although that outlook depends on successful product execution and customer adoption. Qualcomm: Data Center Revenue To Reach $15 Billion In 3 Years
• Neutral Sentiment: At the Goldman Sachs Communacopia + Technology Conference, Qualcomm presented its latest business outlook and technology strategy. The conference appearance adds visibility but does not appear to have been the primary catalyst compared with the Amazon announcement. Qualcomm Presents at Goldman Sachs Communacopia + Technology Conference 2026
• Negative Sentiment: The deal includes potential shareholder dilution. Amazon reportedly received a warrant to purchase about 25 million Qualcomm shares, valued at roughly $4 billion at the reported prices. While the warrant aligns Amazon’s interests with Qualcomm’s success, exercising it would increase the share count and dilute existing investors. Qualcomm Stock Surges on Amazon AI Deal and 25 Million Share Warrant

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Evercore set a $159.00 target price on Qualcomm in a research note on Thursday, July 30th. UBS Group cut their price objective on Qualcomm from $190.00 to $170.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Wells Fargo & Company lowered their target price on Qualcomm from $265.00 to $170.00 and set an "equal weight" rating for the company in a report on Thursday, July 30th. Melius Research set a $220.00 price objective on Qualcomm in a research note on Monday, May 18th. Finally, TD Cowen dropped their price objective on shares of Qualcomm from $225.00 to $175.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, twenty have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $203.76.

Qualcomm Stock Up 3.2%

The stock has a market capitalization of $182.83 billion, a P/E ratio of 20.15, a PEG ratio of 3.52 and a beta of 1.68. The stock has a 50 day moving average price of $168.65 and a 200-day moving average price of $170.04. 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 issued its earnings results 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 business had revenue of $9.95 billion during the quarter, compared to analysts' expectations of $9.69 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.Qualcomm's quarterly revenue was down 4.0% compared to the same quarter last year. During the same period last year, the firm posted $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, research analysts expect that Qualcomm Incorporated will post 7.74 EPS for the current fiscal year.

Qualcomm Dividend Announcement

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

Insider Transactions at Qualcomm

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $163.26, for a total transaction of $408,150.00. Following the sale, the executive vice president owned 20,684 shares of the company's stock, valued at approximately $3,376,869.84. The trade was a 10.78% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $147.04, for a total transaction of $470,528.00. Following the sale, the executive vice president directly owned 36,535 shares in the company, valued at $5,372,106.40. This represents a 8.05% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 11,533 shares of company stock valued at $1,961,219 in the last ninety days. 0.05% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in QCOM. Nykredit A S acquired a new position in shares of Qualcomm during the 2nd quarter valued at about $177,324,000. Anchor Capital Advisors LLC raised its holdings in Qualcomm by 299.9% in the second quarter. Anchor Capital Advisors LLC now owns 25,502 shares of the wireless technology company's stock valued at $4,713,000 after buying an additional 19,125 shares during the period. Range Advisory LLC raised its position in Qualcomm by 6.8% in the second quarter. Range Advisory LLC now owns 1,753 shares of the wireless technology company's stock valued at $324,000 after purchasing an additional 111 shares during the period. Amundi boosted its holdings in Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock worth $1,884,071,000 after acquiring an additional 4,942,908 shares during the period. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in Qualcomm during the 2nd quarter valued at approximately $23,723,000. 74.35% of the stock is owned by hedge funds and other institutional investors.

About Qualcomm

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.

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