Qualcomm (NASDAQ:QCOM) Sets New 1-Year High - What's Next?

Key Points

• Qualcomm hit a new 52-week high, trading as high as $258 and closing well above its previous $238.16 level as investors piled into the stock.
• Sentiment improved on reports that Qualcomm struck a potential AI chip deal with ByteDance for data centers, adding a possible new growth catalyst alongside broader strength in AI-related stocks.
• The company also boosted shareholder returns by raising its quarterly dividend to $0.92 per share and maintaining a large $20 billion share repurchase authorization.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price hit a new 52-week high on Tuesday . The stock traded as high as $258.00 and last traded at $257.33, with a volume of 9353239 shares traded. The stock had previously closed at $238.16.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reportedly reached a deal to supply AI chips to ByteDance for data centers, a potential new growth driver for the company. Qualcomm strikes AI chip deal with TikTok owner ByteDance, Bloomberg News reports
• Positive Sentiment: Qualcomm shares are also benefiting from a broader rally in AI-related stocks and upbeat market momentum in tech. Why Qualcomm, AMD, Intel, other AI stocks are surging sharply on Tuesday
• Positive Sentiment: Qualcomm’s expanded Stellantis partnership could help expand adoption of Snapdragon Digital Chassis in connected vehicles. Can Qualcomm's Expanded Stellantis Tie-Up Boost Its Shares?
• Neutral Sentiment: Qualcomm was highlighted as a trending stock, reflecting elevated investor attention rather than a specific fundamental update. QUALCOMM Incorporated (QCOM) Is a Trending Stock: Facts to Know Before Betting on It

Wall Street Analyst Weigh In

QCOM has been the subject of several recent research reports. Susquehanna boosted their price objective on Qualcomm from $140.00 to $160.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Robert W. Baird set a $300.00 price objective on Qualcomm in a report on Friday, May 1st. Melius Research set a $220.00 price objective on Qualcomm in a report on Monday, May 18th. Piper Sandler reissued an "overweight" rating and set a $200.00 price objective on shares of Qualcomm in a report on Thursday, February 5th. Finally, DZ Bank cut Qualcomm from a "buy" rating to a "hold" rating and set a $195.00 price target for the company. in a research note on Friday, May 8th. Fourteen equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $181.79.

Qualcomm Price Performance

The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.61 and a current ratio of 2.37. The company has a 50-day moving average of $156.96 and a 200-day moving average of $159.19. The firm has a market capitalization of $261.82 billion, a price-to-earnings ratio of 27.00, a price-to-earnings-growth ratio of 29.50 and a beta of 1.49.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. During the same period in the previous year, the firm earned $2.85 EPS. Qualcomm's quarterly revenue was down 3.5% compared to the same quarter last year. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, research analysts anticipate that Qualcomm Incorporated will post 7.99 EPS for the current fiscal year.

Qualcomm Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. This is an increase from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date of this dividend is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a yield of 1.5%. Qualcomm's payout ratio is currently 38.70%.

Qualcomm declared that its board has authorized a share repurchase program on Tuesday, March 17th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the wireless technology company to buy up to 14.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at Qualcomm

In other Qualcomm news, CEO Cristiano R. Amon sold 10,000 shares of the company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the completion of the transaction, the chief executive officer owned 197,568 shares of the company's stock, valued at $35,562,240. This represents a 4.82% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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 company's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following the transaction, the executive vice president directly owned 39,735 shares of the company's stock, valued at approximately $7,065,677.70. This trade represents a 7.45% 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. In the last 90 days, insiders sold 19,306 shares of company stock worth $3,435,583. Insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Qualcomm

A number of large investors have recently added to or reduced their stakes in the business. Your Advocates Ltd. LLP bought a new position in shares of Qualcomm in the first quarter worth $26,000. Cloud Capital Management LLC bought a new position in shares of Qualcomm in the third quarter worth $27,000. Richardson Financial Services Inc. increased its position in shares of Qualcomm by 90.9% in the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock worth $29,000 after purchasing an additional 80 shares during the period. Torren Management LLC bought a new position in shares of Qualcomm in the fourth quarter worth $29,000. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of 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 purchasing an additional 170 shares during the period. Institutional investors own 74.35% of the company's stock.

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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