Qualcomm (NASDAQ:QCOM) Trading Up 4.2% - Here's Why

Key Points

• Qualcomm shares rose 4.2% to $187.80, driven largely by its expanded Amazon Web Services partnership involving customized AI data-center chips, optical connectivity and up to $4 billion in Qualcomm stock warrants.
• The company is pursuing growth beyond smartphones through AI data centers, networking, automotive and programmable computing; StoneX reiterated a Buy rating with a $270 price target.
• Risks remain around execution and valuation: analysts have a consensus “Hold” rating with a $204.10 target, while handset weakness, Apple’s modem transition and the possibility that data-center growth is already priced in could weigh on the stock.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shot up 4.2% during trading on Tuesday . The stock traded as high as $190.06 and last traded at $187.80. 13,630,840 shares traded hands during trading, a decline of 12% from the average session volume of 15,567,331 shares. The stock had previously closed at $180.15.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: AWS collaboration strengthens the growth narrative. Qualcomm’s multigenerational partnership with Amazon involves customized AI data-center silicon, optical connectivity and expanded use of AWS infrastructure. The agreement could provide substantial hyperscale exposure and includes Amazon warrants for up to $4 billion of Qualcomm stock. Why Qualcomm Is Up After New Amazon AI Chip Deal
• Positive Sentiment: Analyst support added momentum. StoneX reiterated a Buy rating and a $270 price target, citing Qualcomm’s data-center ambitions and growing relationships with hyperscale customers as the company diversifies beyond smartphones. Qualcomm Stock Rises as AWS Deal Boosts Outlook
• Positive Sentiment: Broader AI infrastructure opportunities are emerging. A partnership with Cornelis Networks extends Qualcomm’s push into AI networking and programmable compute, while automotive and data-center businesses are increasingly viewed as important long-term growth drivers. Qualcomm’s Datacenter Pivot Is Real
• Neutral Sentiment: Dividend payment offers shareholder support. Qualcomm’s quarterly dividend is scheduled for September 24, 2026, for investors who were shareholders of record on September 3. Qualcomm Dividend Payment
• Negative Sentiment: Execution and valuation remain risks. Commentators note that Wall Street may already be pricing in much of Qualcomm’s data-center opportunity before meaningful revenue is proven. The company also faces uneven handset demand, the Apple modem transition, elevated oil prices and broader economic uncertainty. AI Fallen Angels Wall Street Marked Down

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on QCOM shares. UBS Group cut their price objective on shares of Qualcomm from $190.00 to $170.00 and set a "neutral" rating on the stock in a research report on Thursday, July 30th. Monness Crespi & Hardt raised Qualcomm to a "buy" rating in a research note on Thursday, June 25th. Benchmark cut their price target on Qualcomm from $300.00 to $270.00 and set a "buy" rating on the stock in a report on Monday, July 27th. Piper Sandler assumed coverage on Qualcomm in a research report on Wednesday, September 9th. They set a "neutral" rating and a $190.00 price objective for the company. Finally, The Goldman Sachs Group set a $160.00 price objective on Qualcomm in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $204.10.

Qualcomm Price Performance

The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02. The company has a fifty day moving average price of $168.32 and a two-hundred day moving average price of $171.29. The company has a market cap of $197.23 billion, a P/E ratio of 21.74, a PEG ratio of 3.79 and a beta of 1.68.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its 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). The company had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.69 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.The business's revenue was down 4.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. On average, sell-side analysts anticipate that Qualcomm Incorporated will post 7.74 earnings per share for the current fiscal year.

Qualcomm Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm's dividend payout ratio is presently 42.59%.

Insider Buying and Selling

In other news, CAO Patricia Y. Grech sold 625 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the transaction, 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 business's 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 transaction, the executive vice president owned 36,535 shares in the company, valued at $5,372,106.40. This represents 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. Over the last three months, insiders have sold 11,533 shares of company stock worth $1,924,969. Insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Qualcomm

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in Qualcomm in the 2nd quarter worth approximately $17,583,115,000. Geode Capital Management LLC lifted its position in Qualcomm by 12.5% in the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company's stock valued at $4,931,968,000 after purchasing an additional 3,221,924 shares during the last quarter. Van ECK Associates Corp boosted its stake in shares of 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 during the period. Norges Bank purchased a new stake in shares of Qualcomm during the fourth quarter valued at approximately $2,591,056,000. Finally, Invesco Ltd. grew its holdings in shares of Qualcomm by 28.1% in 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 during the last quarter. 74.35% of the stock is currently owned by institutional investors and hedge funds.

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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