Qualcomm (NASDAQ:QCOM) Stock Price Down 2.1% - Time to Sell?

Key Points

• Qualcomm shares fell 2.1% on Tuesday, trading as low as $183.50 after closing at $188.72, with volume running well above average at 21.6 million shares.
• AI and data-center optimism remains a major theme, with recent coverage highlighting Qualcomm’s Dragonfly C1000 server CPU, a potential $15 billion data-center revenue target by fiscal 2029, and partnerships with major customers like Meta and Microsoft.
• Wall Street remains mixed on QCOM: the consensus rating is “Hold” with an average price target of $220.45, while several firms have recently lifted targets sharply even as others keep cautious hold ratings.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) dropped 2.1% during trading on Tuesday . The stock traded as low as $183.50 and last traded at $184.79. 21,568,247 shares were traded during trading, an increase of 27% from the average session volume of 17,038,701 shares. The stock had previously closed at $188.72.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm is being highlighted for a bigger AI infrastructure opportunity, with recent coverage emphasizing its Dragonfly C1000 server CPU, a goal of $15 billion in data center revenue by fiscal 2029, and deployments with blue-chip customers such as Meta Platforms and Microsoft. Overclocking Qualcomm: Rewiring the AI Compute Market
• Positive Sentiment: Investor enthusiasm also got a boost from commentary that Qualcomm “now has the pieces to compete across the AI stack,” reinforcing the view that its long-term growth story is expanding beyond handsets. Qualcomm Now Has The Pieces To Compete Across The AI Stack: Analyst
• Positive Sentiment: Analysts and price-prediction pieces continue to frame QCOM as undervalued relative to its AI and data-center potential, which may be supporting buying interest. Qualcomm Price Prediction: The Forecast Is Far More Bullish Than Analysts
• Neutral Sentiment: ByteDance is reportedly targeting an in-house CPU for 2027, while partnering with Qualcomm on the effort, which could modestly reinforce Qualcomm’s relevance in custom-chip development without providing an immediate revenue impact. ByteDance targets in-house CPU for 2027 deployment, partners with Qualcomm: report
• Neutral Sentiment: Qualcomm is drawing attention from traders and investors, and Zacks notes the stock has been heavily watched recently; this reflects interest more than a clear operational catalyst. Here is What to Know Beyond Why QUALCOMM Incorporated (QCOM) is a Trending Stock
• Neutral Sentiment: Bernstein reportedly assigned Qualcomm a Hold rating, signaling a more cautious stance from at least one sell-side shop. Qualcomm (QCOM) Gets a Hold from Bernstein
• Negative Sentiment: One report says Qualcomm’s possible purchase of Tenstorrent looks less likely, reducing speculation around a potentially strategic AI-chip acquisition. Qualcomm's Tenstorrent Deal Looks Less Likely

Analysts Set New Price Targets

Several analysts have weighed in on the stock. JPMorgan Chase & Co. boosted their price target on shares of Qualcomm from $160.00 to $265.00 and gave the stock a "neutral" rating in a research note on Friday, June 5th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $160.00 price objective on shares of Qualcomm in a report on Thursday, April 30th. Rosenblatt Securities boosted their target price on Qualcomm from $190.00 to $265.00 and gave the company a "buy" rating in a research note on Thursday, June 25th. Zacks Research raised Qualcomm from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Finally, Evercore set a $179.00 target price on Qualcomm in a report on Thursday, April 30th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $220.45.

Qualcomm Stock Down 2.1%

The firm has a market cap of $194.77 billion, a PE ratio of 20.09, a PEG ratio of 5.64 and a beta of 1.59. 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's 50-day simple moving average is $202.17 and its two-hundred day simple moving average is $167.88.

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 (EPS) 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 business had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. During the same quarter last year, the firm earned $2.85 EPS. The company'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, analysts predict that Qualcomm Incorporated will post 7.96 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Investors of record on Thursday, June 4th were paid a $0.92 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is a boost from Qualcomm's previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a dividend yield of 2.0%. Qualcomm's payout ratio is 40.00%.

Qualcomm declared that its Board of Directors has initiated a share repurchase plan on Tuesday, March 17th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the wireless technology company to reacquire up to 14.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $130.34, for a total value of $325,850.00. Following the completion of the sale, the executive vice president owned 30,684 shares in the company, valued at approximately $3,999,352.56. This trade represents a 7.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of Qualcomm stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. 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 90 days, insiders sold 21,806 shares of company stock worth $3,928,958. 0.05% of the stock is currently owned by company insiders.

Institutional Trading of Qualcomm

Several large investors have recently added to or reduced their stakes in the stock. World Investment Advisors raised its holdings in Qualcomm by 14.3% in the fourth quarter. World Investment Advisors now owns 64,911 shares of the wireless technology company's stock worth $11,103,000 after purchasing an additional 8,130 shares in the last quarter. MUFG Securities EMEA plc boosted its holdings in shares of Qualcomm by 112.2% during the 4th quarter. MUFG Securities EMEA plc now owns 43,986 shares of the wireless technology company's stock valued at $7,524,000 after buying an additional 23,262 shares in the last quarter. Swedbank AB grew its position in shares of Qualcomm by 1.5% in the 4th quarter. Swedbank AB now owns 1,533,420 shares of the wireless technology company's stock worth $262,291,000 after buying an additional 23,110 shares during the period. NBC Securities Inc. grew its position in shares of Qualcomm by 47.5% in the 4th quarter. NBC Securities Inc. now owns 18,691 shares of the wireless technology company's stock worth $3,197,000 after buying an additional 6,018 shares during the period. Finally, Sequoia Financial Advisors LLC increased its stake in shares of Qualcomm by 5.7% in the 4th quarter. Sequoia Financial Advisors LLC now owns 143,690 shares of the wireless technology company's stock worth $24,578,000 after acquiring an additional 7,804 shares in the last quarter. 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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