Qualcomm (NASDAQ:QCOM) Shares Down 6.9% - Here's Why

Key Points

• Qualcomm shares fell 6.9% on Wednesday, trading as low as $190.10 amid heavier-than-normal volume. The decline followed a broader pullback in semiconductor stocks and profit-taking in AI-related chip names.
• Despite the weakness, Qualcomm has received supportive AI-related headlines, including Jensen Huang’s endorsement, new edge-AI initiatives, and investor attention on upcoming AI/data-center catalysts. Still, Wall Street’s consensus rating remains Hold.
• The company recently beat quarterly EPS estimates and raised its dividend to $0.92 per quarter, while also authorizing a $20 billion share repurchase plan. Analysts’ targets remain mixed, with a consensus price target of $181.79.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares traded down 6.9% on Wednesday . The stock traded as low as $190.10 and last traded at $191.20. 18,093,033 shares traded hands during mid-day trading, an increase of 11% from the average session volume of 16,246,167 shares. The stock had previously closed at $205.42.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Jensen Huang’s public endorsement of Qualcomm has helped sentiment, with NVIDIA’s CEO encouraging investors to buy the stock and highlighting Qualcomm’s strength in mobile hardware. Qualcomm shares rise 2% after Nvidia CEO endorses the stock
• Positive Sentiment: Qualcomm continues to expand beyond smartphones with new AI initiatives, including an AI-powered enterprise conference platform and collaborations on edge AI solutions for energy operations, supporting the long-term growth narrative. Qualcomm’s Edge AI Push Into Enterprise Meeting Rooms Faces Valuation Hurdles
• Positive Sentiment: Recent semiconductor rebounds and upcoming investor-day catalysts are keeping attention on Qualcomm’s AI/data-center roadmap, which could support shares if management delivers more detail later this month. Qualcomm jumps as chip stocks rebound and investors refocus on upcoming AI/data-center catalysts
• Neutral Sentiment: Brokerage sentiment remains mixed, with Qualcomm currently carrying an average “Hold” rating, suggesting Wall Street is not seeing a strong near-term catalyst from analyst coverage alone.
• Neutral Sentiment: Qualcomm’s recent partnership headlines with SDG&E and Scripps on AI wildfire monitoring are strategically positive, but they are not likely to move the stock materially in the short term. SDG&E, Qualcomm, Scripps team up to curb wildfires with AI
• Negative Sentiment: Today’s weakness is being amplified by a broader semiconductor correction and profit-taking after a sharp rally in AI-related chip stocks, which is weighing on Qualcomm despite its recent momentum.
• Negative Sentiment: Several market reports say Qualcomm is underperforming peers as chip investors de-risk and shorts increase across the semiconductor group, adding pressure to the stock. Semiconductor shorts pile on as winning trade reverses

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. UBS Group downgraded Qualcomm from a "neutral" rating to an "underperform" rating in a report on Friday, May 8th. Bank of America assumed coverage on Qualcomm in a report on Tuesday, March 10th. They issued an "underperform" rating and a $145.00 price target for the company. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $160.00 price target on shares of Qualcomm in a report on Thursday, April 30th. Daiwa Securities Group raised shares of Qualcomm from a "neutral" rating to an "outperform" rating and set a $225.00 price objective for the company in a research note on Friday, May 8th. Finally, Barclays boosted their price objective on shares of Qualcomm from $130.00 to $150.00 and gave the company an "underweight" rating in a research note on Thursday, April 30th. Fourteen analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $181.79.

Qualcomm Price Performance

The company's 50 day moving average price is $179.97 and its 200-day moving average price is $164.02. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $201.52 billion, a PE ratio of 20.78, a PEG ratio of 26.97 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, topping analysts' consensus estimates of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The firm had revenue of $10.60 billion during the quarter, compared to analysts' expectations of $10.59 billion. During the same period in the prior year, the company earned $2.85 EPS. The firm's revenue was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, sell-side analysts forecast that Qualcomm Incorporated will post 7.99 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th will be paid a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm's payout ratio is 40.00%.

Qualcomm announced that its board has initiated a share repurchase plan on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to buy up to 14.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, CAO Patricia Y. Grech sold 829 shares of Qualcomm stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $201.77, for a total transaction of $167,267.33. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $211.90, for a total value of $529,750.00. Following the sale, the executive vice president directly owned 28,184 shares in the company, valued at approximately $5,972,189.60. The trade was a 8.15% decrease in their ownership of the stock. 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 19,306 shares of company stock worth $3,435,583 in the last ninety days. 0.05% of the stock is owned by corporate insiders.

Institutional Trading of Qualcomm

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Basepoint Wealth LLC increased its position in shares of Qualcomm by 1.8% during the first quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company's stock worth $429,000 after acquiring an additional 59 shares during the last quarter. Certified Advisory Corp lifted its position in shares of Qualcomm by 0.6% during the third quarter. Certified Advisory Corp now owns 10,085 shares of the wireless technology company's stock worth $1,678,000 after purchasing an additional 62 shares during the last quarter. ProVise Management Group LLC lifted its position in shares of Qualcomm by 2.6% during the third quarter. ProVise Management Group LLC now owns 2,560 shares of the wireless technology company's stock worth $426,000 after purchasing an additional 64 shares during the last quarter. Baker Tilly Wealth Management LLC lifted its position in shares of Qualcomm by 1.0% during the fourth quarter. Baker Tilly Wealth Management LLC now owns 6,401 shares of the wireless technology company's stock worth $1,095,000 after purchasing an additional 64 shares during the last quarter. Finally, Modern Wealth Management LLC lifted its position in shares of Qualcomm by 0.5% during the first quarter. Modern Wealth Management LLC now owns 13,704 shares of the wireless technology company's stock worth $1,744,000 after purchasing an additional 64 shares during the last quarter. 74.35% of the stock is owned by hedge funds and other institutional investors.

Qualcomm Company Profile

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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