Qualcomm (NASDAQ:QCOM) Shares Up 6.2% - What's Next?

Key Points

• Qualcomm shares jumped 6.2% on Thursday, with trading volume far above average as investors reacted to renewed optimism around the stock.
• Sentiment is being driven by Qualcomm’s June 24 Investor Day, where management is expected to outline its AI, data center, 6G, and industrial AI strategy and potentially provide new long-term targets.
• The company is also gaining attention for its push into AI data center chips, including reports of a custom program with a major hyperscaler and speculation that Qualcomm may pursue a large AI-chip acquisition to speed up its expansion.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) was up 6.2% on Thursday . The company traded as high as $229.42 and last traded at $226.11. 46,682,079 shares traded hands during trading, an increase of 183% from the average daily volume of 16,468,021 shares. The stock had previously closed at $212.97.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Investor sentiment is being lifted by Qualcomm’s upcoming June 24 Investor Day, where management is expected to highlight its long-term AI, data center, 6G, and industrial AI strategy. Market participants are looking for new revenue targets and evidence that the company can expand beyond handsets. Qualcomm Shares Gain as Investor Day Hopes and AI Data Center Momentum Lift Sentiment
• Positive Sentiment: Qualcomm is also getting a boost from its push into AI data center chips, including reports that it has launched a custom AI data center program with a major hyperscaler and could begin initial shipments later this year. That supports the idea that Qualcomm is building a meaningful new business line in AI infrastructure. Qualcomm (QCOM) Launches New AI Data Center Program With A Major Hyperscaler
• Positive Sentiment: Speculation around a possible $8 billion to $10 billion acquisition of AI chip startup Tenstorrent is reinforcing Qualcomm’s ambitions to accelerate its AI roadmap and compete more directly in the data center market. Investors appear to view the move as a shortcut to faster AI relevance. Qualcomm in Talks to Acquire AI Chip Startup Tenstorrent, Reuters Reports
• Neutral Sentiment: Recent commentary from analysts and market outlets remains mixed, but several pieces argue that Qualcomm is still undervalued if automotive, IoT, and data center revenue continue improving. This helps support the stock’s rerating, though it is not a near-term fundamental catalyst by itself. Qualcomm Goes All-In: The $10B Bet to Crush NVIDIA
• Neutral Sentiment: The upcoming quarterly dividend and recent institutional ownership shifts are supportive for sentiment, but they are not the main drivers of the stock’s move today. Qualcomm to pay dividends next week; Here's how much 100 QCOM shares will earn
• Negative Sentiment: There is still some caution around Qualcomm’s transition story, including recent analyst splits and ongoing insider selling, which could temper enthusiasm if management does not deliver a strong AI/data center update. Qualcomm Shares Gain as Investor Day Hopes and AI Data Center Momentum Lift Sentiment

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on QCOM shares. JPMorgan Chase & Co. boosted their price target on Qualcomm from $160.00 to $265.00 and gave the company a "neutral" rating in a report on Friday, June 5th. Barclays raised their price objective on Qualcomm from $130.00 to $150.00 and gave the company an "underweight" rating in a report on Thursday, April 30th. Royal Bank Of Canada increased their target price on Qualcomm from $150.00 to $175.00 and gave the company a "sector perform" rating in a research report on Thursday, April 30th. Melius Research set a $220.00 price target on Qualcomm in a research report on Monday, May 18th. Finally, Sanford C. Bernstein reissued a "market perform" rating and issued a $140.00 target price (down from $175.00) on shares of Qualcomm in a research note on Thursday, March 26th. Fifteen equities research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $188.04.

Qualcomm Stock Up 6.2%

The company has a market capitalization of $238.32 billion, a PE ratio of 24.58, a PEG ratio of 26.48 and a beta of 1.59. 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 business has a fifty day moving average of $189.80 and a 200 day moving average of $165.94.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.56 by $0.09. The business had revenue of $10.60 billion for the quarter, compared to analysts' expectations of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business's quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities research analysts anticipate that Qualcomm Incorporated will post 8 EPS for the current year.

Qualcomm Increases Dividend

The business also recently disclosed 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 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Thursday, June 4th. This is a boost from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio (DPR) is 40.00%.

Qualcomm announced that its Board of Directors has authorized a stock buyback plan on Tuesday, March 17th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the wireless technology company to reacquire up to 14.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's leadership believes its shares are undervalued.

Insider Activity

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $197.35, for a total transaction of $493,375.00. Following the completion of the sale, the executive vice president owned 25,684 shares in the company, valued at approximately $5,068,737.40. The trade was a 8.87% decrease in their position. The sale 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 on Monday, May 4th. The shares were sold at an average price of $177.82, for a total transaction of $569,024.00. Following the completion of the transaction, the executive vice president directly owned 39,735 shares in the company, valued at $7,065,677.70. This trade represents a 7.45% 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 sold a total of 21,806 shares of company stock valued at $3,928,958 in the last 90 days. Company insiders own 0.05% of the company's stock.

Institutional Trading of Qualcomm

Large investors have recently made changes to their positions in the company. Your Advocates Ltd. LLP acquired a new stake in shares of Qualcomm in the first quarter valued at approximately $26,000. Richardson Financial Services Inc. increased its holdings in shares of Qualcomm by 90.9% in the 4th quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock valued at $29,000 after acquiring an additional 80 shares during the period. Torren Management LLC purchased a new stake in Qualcomm in the 4th quarter valued at $29,000. Caitong International Asset Management Co. Ltd boosted its stake in Qualcomm by 17,000.0% during the 4th 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. Finally, Birchwood Financial Partners Inc. acquired a new stake in Qualcomm during the 4th quarter worth $31,000. 74.35% of the stock is owned by institutional investors and hedge funds.

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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