Qualcomm (NASDAQ:QCOM) Stock Price Down 8.8% - Time to Sell?

Key Points

• Qualcomm shares fell 8.8% on Monday, with heavier-than-usual trading volume, as investors reacted to renewed competition concerns in AI PCs and Windows laptops.
• Nvidia’s Computex PC chip push was the main negative catalyst, with reports suggesting Qualcomm may face more pressure in the AI PC market near term.
• Despite the selloff, Qualcomm is still backing growth themes through its AI PC strategy, while analysts remain mixed and currently assign the stock a consensus Hold rating with a $181.79 target price.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) dropped 8.8% during trading on Monday . The company traded as low as $226.81 and last traded at $228.99. Approximately 20,933,712 shares changed hands during trading, an increase of 31% from the average daily volume of 15,973,445 shares. The stock had previously closed at $251.02.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm is continuing to pitch its AI PC opportunity, with coverage highlighting the new Snapdragon C Platform for entry-level laptops, emphasizing all-day battery life, built-in AI, and support from Acer, HP, and Lenovo. Article Title
• Positive Sentiment: CEO Cristiano Amon’s COMPUTEX comments underscore Qualcomm’s long-term AI growth story, including his view that AI token usage could surge dramatically by 2030, which supports the company’s broader AI positioning. Article Title
• Neutral Sentiment: Some commentary argues Qualcomm may be a long-term value opportunity after a strong run in AI-related chips, but these pieces are mixed and largely speculative rather than catalyst-driven. Article Title
• Negative Sentiment: Nvidia’s Computex launch is the main pressure point, with multiple reports saying Qualcomm shares slid as investors worried the new chip could intensify competition in AI PCs and Windows laptops. Article Title
• Negative Sentiment: Broader market coverage also notes Qualcomm underperforming after Nvidia’s “PC chip market” push, reinforcing concerns that AI PC competition could limit near-term upside. Article Title

Analysts Set New Price Targets

QCOM has been the topic of a number of research analyst reports. Citigroup raised their target price on Qualcomm from $140.00 to $160.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. Zacks Research raised Qualcomm from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Evercore set a $179.00 target price on Qualcomm in a report on Thursday, April 30th. Wells Fargo & Company lowered Qualcomm from a "positive" rating to an "underweight" rating in a report on Friday, May 8th. Finally, Seaport Research Partners reaffirmed a "sell" rating and issued a $100.00 target price on shares of Qualcomm in a report on Monday, March 16th. Fourteen equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Qualcomm has a consensus rating of "Hold" and a consensus target price of $181.79.

Qualcomm Price Performance

The stock has a 50-day simple moving average of $166.07 and a 200 day simple moving average of $161.17. 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 market cap of $241.36 billion, a P/E ratio of 24.89, a P/E/G ratio of 31.09 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping analysts' consensus estimates of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The company had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same quarter last year, the company earned $2.85 EPS. The company's quarterly 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, equities analysts expect that Qualcomm Incorporated will post 7.99 EPS for the current year.

Qualcomm Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be given a dividend of $0.92 per share. This is a boost from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. This represents a $3.68 annualized dividend and a dividend yield of 1.6%. Qualcomm's dividend payout ratio is 38.70%.

Qualcomm declared that its board has approved a stock buyback program on Tuesday, March 17th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the wireless technology company to reacquire up to 14.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, EVP Heather S. Ace sold 3,200 shares of the firm'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 transaction of $569,024.00. Following the completion of the transaction, the executive vice president owned 39,735 shares in the company, valued at $7,065,677.70. This trade represents a 7.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available 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 the firm's 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. 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 19,306 shares of company stock worth $3,435,583 over the last 90 days. Corporate insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank bought a new position in Qualcomm in the 4th quarter valued at $2,591,056,000. Wellington Management Group LLP raised its position in Qualcomm by 141.8% in the 3rd quarter. Wellington Management Group LLP now owns 12,437,240 shares of the wireless technology company's stock valued at $2,069,059,000 after purchasing an additional 7,292,783 shares during the last quarter. Geode Capital Management LLC raised its position in Qualcomm by 12.5% in the 4th quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company's stock valued at $4,931,968,000 after purchasing an additional 3,221,924 shares during the last quarter. Invesco Ltd. raised its position in Qualcomm by 28.1% in the 4th quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company's stock valued at $2,163,030,000 after purchasing an additional 2,771,490 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Qualcomm by 36.8% in the 3rd quarter. Dimensional Fund Advisors LP now owns 6,552,427 shares of the wireless technology company's stock valued at $1,090,025,000 after purchasing an additional 1,764,252 shares during the last quarter. Institutional investors own 74.35% of the company's stock.

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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