Qualcomm (NASDAQ:QCOM) Stock Price Up 3.8% - Time to Buy?

Key Points

• Qualcomm shares rose 3.8% on Wednesday, trading as high as $255.09 on heavier-than-average volume, but the stock still sits well above its 50-day and 200-day moving averages after the recent rally.
• Investor sentiment is being lifted by Qualcomm’s push into AI, including its “Year of the Agent” messaging and new Dragonfly AI data center brand, as the company works to diversify beyond smartphones.
• There are still notable headwinds and mixed analyst views: some coverage warns about smartphone demand softness and margin pressure, while Wall Street’s average rating remains “Hold” with a consensus price target of $181.79, far below the recent trading level.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) shares rose 3.8% on Wednesday . The stock traded as high as $255.09 and last traded at $250.01. Approximately 19,218,528 shares traded hands during mid-day trading, an increase of 20% from the average daily volume of 16,031,229 shares. The stock had previously closed at $240.84.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm is leaning harder into AI with its “Year of the Agent” messaging and new Dragonfly AI data center brand, which could help it diversify beyond smartphones and support a higher valuation if execution improves. Qualcomm says 2026 is the ‘year of agents,' unveils Dragonfly AI data center brand
• Positive Sentiment: Analysts and commentary continue to highlight Qualcomm’s diversification into automotive, IoT, and AI inference as a long-term growth story, which is helping keep investor sentiment constructive. Qualcomm Aims To Power The AI Inference Boom
• Neutral Sentiment: Stock-focused pieces have raised the question of whether Qualcomm can reach $300 this year, reflecting elevated expectations after a sharp move higher but not pointing to a specific new catalyst. Qualcomm Plagued by Margin Woes, Demand Softness: Time to Rethink?
• Neutral Sentiment: Long-term performance articles underscore Qualcomm’s strong historical returns, but they are mostly retrospective and unlikely to move the stock on their own. What a $1K Investment in Qualcomm 15 Years Ago Is Worth Today (Hint: It's More Than You Think)
• Negative Sentiment: Bearish coverage warns that Qualcomm is still dealing with smartphone demand softness and margin pressure, especially since its handset business remains a major earnings driver and can weigh on near-term results. Qualcomm Plagued by Margin Woes, Demand Softness: Time to Rethink?

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $160.00 price target on shares of Qualcomm in a research note on Thursday, April 30th. Bank of America assumed coverage on shares of Qualcomm in a research note on Tuesday, March 10th. They set an "underperform" rating and a $145.00 price target on the stock. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $140.00 price target (down from $175.00) on shares of Qualcomm in a research note on Thursday, March 26th. Melius Research set a $220.00 price target on shares of Qualcomm in a research note on Monday, May 18th. Finally, UBS Group downgraded shares of Qualcomm from a "neutral" rating to an "underperform" rating in a research note on Friday, May 8th. Fourteen investment analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $181.79.

Qualcomm Stock Up 3.8%

The firm's 50-day moving average price is $168.02 and its 200-day moving average price is $161.56. The company has a market cap of $263.51 billion, a price-to-earnings ratio of 27.18, a price-to-earnings-growth ratio of 28.36 and a beta of 1.59. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61.

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 (EPS) for the quarter, topping the consensus estimate of $2.56 by $0.09. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. During the same quarter in the prior year, the business earned $2.85 earnings per share. The business's quarterly revenue was down 3.5% compared to the same quarter last year. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Sell-side analysts forecast that Qualcomm Incorporated will post 7.99 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be issued a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio (DPR) is 40.00%.

Qualcomm announced that its board has authorized a share buyback 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 repurchase up to 14.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Activity

In related news, EVP Heather S. Ace sold 3,200 shares of the firm's 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 sale, the executive vice president directly owned 39,735 shares of the company's stock, valued at approximately $7,065,677.70. This trade represents a 7.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the firm's stock in a transaction 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 sale, the chief executive officer directly owned 197,568 shares of the company's stock, valued at approximately $35,562,240. The trade was a 4.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 19,306 shares of company stock valued at $3,435,583 in the last 90 days. Company insiders own 0.05% of the company's stock.

Institutional Investors Weigh In On Qualcomm

A number of large investors have recently added to or reduced their stakes in the company. Your Advocates Ltd. LLP bought a new position in Qualcomm during the 1st quarter valued at $26,000. Richardson Financial Services Inc. lifted its position in 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 purchasing an additional 80 shares during the last quarter. Torren Management LLC acquired a new position in shares of Qualcomm in the 4th quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after buying an additional 170 shares during the period. Finally, Birchwood Financial Partners Inc. acquired a new stake in shares of Qualcomm during the fourth quarter worth approximately $31,000. 74.35% of the stock is owned by institutional investors and hedge funds.

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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