Qualcomm (NASDAQ:QCOM) Trading 3.2% Higher - Time to Buy?

Key Points

• Shares rose 3.2% on heavy volume after Qualcomm reported an EPS beat and disclosed a major hyperscaler win, boosting investor sentiment that the company is shifting into AI/data‑center exposure.
• The board authorized a $20B share‑repurchase program (up to ~14.5% of shares) and raised the quarterly dividend to $0.92, signaling meaningful capital returns to shareholders.
• However, revenue fell year‑over‑year and handset weakness, rising competition and recent insider sales, plus mixed analyst views (consensus "Hold" with a $172.40 target), keep execution and valuation risks in focus.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price traded up 3.2% on Wednesday . The stock traded as high as $197.50 and last traded at $192.6120. 30,016,043 shares traded hands during mid-day trading, an increase of 125% from the average session volume of 13,368,783 shares. The stock had previously closed at $186.55.

Qualcomm News Roundup

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Major hyperscaler win for custom AI silicon plus a $20B share‑repurchase program — shifts Qualcomm more into AI/data‑center exposure and signals capital return to shareholders, supporting the rally. Read More.
• Positive Sentiment: Q2 showed an EPS beat and record automotive revenue while management emphasized AI, IoT and custom silicon expansion — a re‑rating has followed as investors price in a more diversified revenue mix. Read More.
• Positive Sentiment: Zacks moved Qualcomm from "strong sell" to "hold," removing a major bearish call and reducing some downside analyst pressure. Read More.
• Neutral Sentiment: Industry moves and analyst actions are mixed — Cantor Fitzgerald lifted a price target (still Neutral) and other shops show a range of Buy/Hold/Sell views, leaving the analyst consensus subdued despite recent gains. Read More.
• Neutral Sentiment: Competitive and talent dynamics: Intel has hired an ex‑Qualcomm executive to run parts of its AI/PC business — a reminder of rising competition even as Qualcomm expands into data‑center chips. Read More.
• Negative Sentiment: Revenue slipped year‑over‑year and handset revenue remains weak; analysts caution that handset cycles and higher R&D/competition could pressure near‑term growth despite AI optimism. Read More.
• Negative Sentiment: Insider sales by CEO Cristiano Amon and EVP Heather Ace (filed under Rule 10b5‑1) have been reported — while disclosed as pre‑arranged, such high‑profile sales can add short‑term selling pressure. Read More.
• Negative Sentiment: Bearish/contrarian takes (e.g., "Sell into the hype") argue the rally may be overextended given the 1‑month re‑rating; valuation and execution vs. entrenched data‑center rivals remain the key risks. Read More.

Analysts Set New Price Targets

Several research analysts have weighed in on the stock. Rosenblatt Securities reissued a "buy" rating and issued a $190.00 price target on shares of Qualcomm in a report on Thursday, April 30th. The Goldman Sachs Group assumed coverage on shares of Qualcomm in a report on Monday, March 30th. They issued a "neutral" rating and a $135.00 price target on the stock. Zacks Research raised shares of Qualcomm from a "strong sell" rating to a "hold" rating in a report on Monday. Benchmark increased their price target on shares of Qualcomm from $200.00 to $225.00 and gave the company a "buy" rating in a report on Thursday, April 30th. Finally, Royal Bank Of Canada increased their price target on shares of Qualcomm from $150.00 to $175.00 and gave the company a "sector perform" rating in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $172.40.

Qualcomm Stock Performance

The stock's 50-day simple moving average is $136.57 and its 200-day simple moving average is $155.41. The stock has a market cap of $203.01 billion, a price-to-earnings ratio of 20.94, a price-to-earnings-growth ratio of 20.78 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.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its 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 firm had revenue of $10.60 billion for the quarter, compared to analyst estimates of $10.59 billion. During the same quarter in the prior year, the business posted $2.85 EPS. The business's 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. Analysts forecast that Qualcomm Incorporated will post 8.02 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Thursday, June 4th. This is a boost from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio (DPR) is currently 38.70%.

Qualcomm declared that its Board of Directors has initiated a share buyback program 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 buy up to 14.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In related news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction that occurred on Monday, April 13th. The shares were sold at an average price of $130.34, for a total transaction of $325,850.00. Following 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 legal filing with the SEC, 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 stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the sale, the chief executive officer owned 197,568 shares in the company, valued at $35,562,240. This represents a 4.82% decrease in their position. 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 quarter, insiders have sold 22,510 shares of company stock worth $3,635,753. Insiders own 0.05% of the company's stock.

Institutional Trading of Qualcomm

Several large investors have recently made changes to their positions in QCOM. Your Advocates Ltd. LLP acquired a new stake in shares of Qualcomm during the 1st quarter worth approximately $26,000. Cloud Capital Management LLC acquired a new stake in shares of Qualcomm during the 3rd quarter worth approximately $27,000. Richardson Financial Services Inc. boosted its position in shares of Qualcomm by 90.9% during the 4th quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock worth $29,000 after acquiring an additional 80 shares in the last quarter. Torren Management LLC acquired a new stake in shares of Qualcomm during the 4th quarter worth approximately $29,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Qualcomm by 17,000.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company's stock worth $29,000 after acquiring an additional 170 shares in the last quarter. Institutional investors and hedge funds 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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