Qualcomm (NASDAQ:QCOM) Stock Price Up 11.6% - Here's What Happened

Key Points

• Qualcomm shares jumped 11.6% in Friday trading, with unusually heavy volume, after news that Stellantis expanded its multi-year technology partnership with Qualcomm. The deal strengthens Qualcomm’s role in AI-enabled connected and autonomous vehicles.
• Market commentary was broadly upbeat, with analysts suggesting the stock’s rally could have more room to run. Qualcomm has also been buoyed by wider enthusiasm for AI and mobile-chip names across the semiconductor sector.
• Fundamentals and capital returns remain supportive: Qualcomm recently beat quarterly EPS estimates, raised its dividend to $0.92 per quarter, and has a $20 billion share buyback authorization in place. Despite the rally, Wall Street’s consensus rating is still “Hold.”

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares rose 11.6% during mid-day trading on Friday . The company traded as high as $243.00 and last traded at $238.16. Approximately 30,204,359 shares changed hands during trading, an increase of 95% from the average daily volume of 15,488,767 shares. The stock had previously closed at $213.41.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Stellantis expanded its multi-year technology partnership with Qualcomm, strengthening Qualcomm’s position in AI-enabled connected and autonomous vehicles. Qualcomm soars 12% as Stellantis deepens AI vehicle partnership
• Positive Sentiment: Analysts and market commentary highlighted Qualcomm’s strong comeback and suggested the rally may continue, with some calling for meaningful further upside. Prediction: Analysts Say Qualcomm Stock Is Set For A Massive Breakout
• Neutral Sentiment: Additional coverage framed Qualcomm as a beneficiary of broader AI and mobile-chip enthusiasm, with shares moving alongside other chip names such as Skyworks and Qorvo. Qualcomm Surges 12%, Skyworks Rallies 9%, Qorvo Rises 7%
• Neutral Sentiment: Insider and congressional stock sales were disclosed, but they appear modest relative to Qualcomm’s size and some transactions were pre-arranged, so the impact is likely limited. Patricia Grech Sells 829 Shares of Qualcomm NASDAQ: QCOM Stock

Wall Street Analyst Weigh In

QCOM has been the subject of a number of recent analyst reports. Susquehanna boosted their target price on shares of Qualcomm from $140.00 to $160.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. JPMorgan Chase & Co. boosted their target price on shares of Qualcomm from $140.00 to $160.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. The Goldman Sachs Group assumed coverage on shares of Qualcomm in a research note on Monday, March 30th. They set a "neutral" rating and a $135.00 target price for the company. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $160.00 price objective on shares of Qualcomm in a report on Thursday, April 30th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Qualcomm in a report on Friday, March 27th. Fourteen equities research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $181.79.

Qualcomm Price Performance

The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61. The firm has a fifty day moving average of $152.74 and a two-hundred day moving average of $158.33. The stock has a market capitalization of $251.02 billion, a P/E ratio of 25.89, a P/E/G ratio of 25.08 and a beta of 1.49.

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 the consensus estimate of $2.56 by $0.09. The firm had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The firm's quarterly revenue was down 3.5% on a year-over-year basis. During the same period in the previous year, the company posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, analysts predict that Qualcomm Incorporated will post 7.99 EPS for the current year.

Qualcomm Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be given a $0.92 dividend. This represents a $3.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Thursday, June 4th. This is an increase from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's payout ratio is 40.00%.

Qualcomm declared that its Board of Directors has approved a stock buyback 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 repurchase up to 14.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Insider Activity at Qualcomm

In related news, CAO Patricia Y. Grech sold 829 shares of the stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $201.77, for a total value of $167,267.33. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 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 that occurred 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 of the company's stock, valued at $7,065,677.70. The trade was a 7.45% 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. Over the last quarter, insiders sold 19,306 shares of company stock valued at $3,435,583. Company insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

Hedge funds and other institutional investors have recently modified their holdings of the stock. World Investment Advisors lifted its position in shares of Qualcomm by 14.3% during the 4th quarter. World Investment Advisors now owns 64,911 shares of the wireless technology company's stock valued at $11,103,000 after buying an additional 8,130 shares in the last quarter. Swedbank AB lifted its position in shares of Qualcomm by 1.5% during the 4th quarter. Swedbank AB now owns 1,533,420 shares of the wireless technology company's stock valued at $262,291,000 after buying an additional 23,110 shares in the last quarter. NBC Securities Inc. lifted its position in shares of Qualcomm by 47.5% during the 4th quarter. NBC Securities Inc. now owns 18,691 shares of the wireless technology company's stock valued at $3,197,000 after buying an additional 6,018 shares in the last quarter. Sequoia Financial Advisors LLC lifted its position in shares of Qualcomm by 5.7% during the 4th quarter. Sequoia Financial Advisors LLC now owns 143,690 shares of the wireless technology company's stock valued at $24,578,000 after buying an additional 7,804 shares in the last quarter. Finally, Valley Wealth Managers Inc. lifted its holdings in Qualcomm by 6.1% in the 4th quarter. Valley Wealth Managers Inc. now owns 40,009 shares of the wireless technology company's stock valued at $6,844,000 after purchasing an additional 2,288 shares in the last quarter. 74.35% of the stock is owned by hedge funds and other institutional investors.

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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