Qualcomm (NASDAQ:QCOM) Stock Price Down 7.1% - Here's Why

Key Points

• Qualcomm shares fell 7.1% on Wednesday, trading as low as $230.62 after closing at $248.82, with volume well below average.
• The stock weakness came even as news highlighted a reportedly secured custom AI chip order from ByteDance, which is seen as a sign Qualcomm is expanding beyond mobile chips into AI infrastructure.
• Wall Street remains cautious overall: analysts have a consensus “Hold” rating on QCOM, though the company recently beat quarterly EPS estimates and raised its dividend.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price traded down 7.1% during trading on Wednesday . The stock traded as low as $230.62 and last traded at $231.1850. 5,046,966 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 15,523,772 shares. The stock had previously closed at $248.82.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reportedly secured a custom ASIC order from ByteDance for AI data center workloads, boosting optimism that the company is becoming a larger player in AI infrastructure. Reuters: Qualcomm strikes AI chip deal with TikTok owner ByteDance
• Positive Sentiment: The ByteDance deal reinforces Qualcomm’s expansion beyond mobile chips, complementing its growing automotive business and supporting the case for a valuation re-rating. MarketBeat: Qualcomm's TikTok AI Chip Deal Rewrites the Rules
• Positive Sentiment: Recent strength in semiconductor names and broader AI buying has also helped lift Qualcomm shares, adding momentum to the stock’s rally. Yahoo Finance: Why Qualcomm (QCOM) Stock Is Up Today
• Neutral Sentiment: Investors are also watching upcoming commentary around Qualcomm’s longer-term AI roadmap and its Investor Day, which could provide more detail on the size and durability of the new growth opportunity.
• Negative Sentiment: Some of the recent rally may be vulnerable if geopolitical or export-control issues interfere with shipments tied to ByteDance’s AI infrastructure buildout.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on QCOM shares. Weiss Ratings reissued a "hold (c)" rating on shares of Qualcomm in a research report on Friday, March 27th. Royal Bank Of Canada lifted their price target on shares of Qualcomm from $150.00 to $175.00 and gave the company a "sector perform" rating in a research report on Thursday, April 30th. JPMorgan Chase & Co. lifted their price target on shares of Qualcomm from $140.00 to $160.00 and gave the company a "neutral" rating in a research report on Thursday, April 30th. Mizuho lowered their price target on shares of Qualcomm from $160.00 to $140.00 and set a "neutral" rating for the company in a research report on Thursday, February 5th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $190.00 price target on shares of Qualcomm in a research report on Thursday, April 30th. Fourteen analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat.com, Qualcomm presently has an average rating of "Hold" and a consensus target price of $181.79.

Qualcomm Stock Performance

The firm has a market capitalization of $239.55 billion, a P/E ratio of 24.70, a price-to-earnings-growth ratio of 29.50 and a beta of 1.49. 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's 50 day simple moving average is $159.34 and its two-hundred day simple moving average is $159.68.

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

Qualcomm Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be paid a dividend of $0.92 per share. The ex-dividend date is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a yield of 1.6%. This is an increase from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio (DPR) is 38.70%.

Qualcomm announced that its board has authorized a share repurchase plan on Tuesday, March 17th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the wireless technology company to purchase up to 14.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board 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 Tuesday, May 12th. The shares were sold at an average price of $211.90, for a total transaction of $529,750.00. Following the completion of the transaction, the executive vice president directly owned 28,184 shares of the company's stock, valued at $5,972,189.60. The trade was a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the business's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the transaction, the chief executive officer directly owned 197,568 shares of the company's stock, valued at $35,562,240. The trade was a 4.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 valued at $3,435,583 in the last quarter. 0.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in QCOM. Brighton Jones LLC raised its holdings in shares of Qualcomm by 116.6% during the fourth quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company's stock valued at $2,666,000 after purchasing an additional 9,343 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in shares of Qualcomm by 15.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company's stock valued at $391,000 after purchasing an additional 340 shares during the last quarter. Sivia Capital Partners LLC raised its holdings in shares of Qualcomm by 44.3% during the second quarter. Sivia Capital Partners LLC now owns 3,325 shares of the wireless technology company's stock valued at $530,000 after purchasing an additional 1,020 shares during the last quarter. Main Street Financial Solutions LLC raised its holdings in shares of Qualcomm by 6.1% during the second quarter. Main Street Financial Solutions LLC now owns 5,778 shares of the wireless technology company's stock valued at $920,000 after purchasing an additional 333 shares during the last quarter. Finally, Transamerica Financial Advisors LLC raised its holdings in shares of Qualcomm by 9.7% during the second quarter. Transamerica Financial Advisors LLC now owns 6,800 shares of the wireless technology company's stock valued at $1,083,000 after purchasing an additional 603 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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