Qualcomm (NASDAQ:QCOM) Trading 4.5% Higher - Still a Buy?

Key Points

• Qualcomm shares rose 4.5% on Tuesday, with trading volume nearly double the average as investors piled into AI and semiconductor names.
• The biggest catalyst was reports that Qualcomm struck an AI chip deal with ByteDance for data centers, which could expand its exposure to a high-growth market.
• Sentiment is also supported by an expanded Stellantis partnership for automotive chips and a recently increased quarterly dividend, though analysts still view the stock as a Hold overall.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price shot up 4.5% during trading on Tuesday . The stock traded as high as $258.00 and last traded at $248.82. 30,554,819 shares traded hands during mid-day trading, an increase of 95% from the average session volume of 15,643,302 shares. The stock had previously closed at $238.16.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Reports say Qualcomm reached a deal with ByteDance to supply AI chips for data centers, potentially opening a new, high-growth customer and expanding Qualcomm’s AI chip exposure. Reuters article on Qualcomm strikes AI chip deal with TikTok owner ByteDance
• Positive Sentiment: Shares jumped as investors piled into AI and semiconductor names, with broader tech strength adding momentum to Qualcomm’s rally. Invezz article on AI stocks surging sharply on Tuesday
• Positive Sentiment: Qualcomm is also benefiting from an expanded Stellantis partnership that could boost adoption of its Snapdragon Digital Chassis in connected vehicles. Yahoo Finance article on Qualcomm's expanded Stellantis tie-up
• Neutral Sentiment: Qualcomm remains a widely watched trending stock, with investor attention elevated after the recent rally. Zacks article on Qualcomm being a trending stock
• Negative Sentiment: A congressional sale of Qualcomm shares near record highs may add a small overhang, though it appears secondary to the stronger AI and partnership-driven upside. Yahoo Finance article on congressional Qualcomm stock sales

Analyst Upgrades and Downgrades

Several brokerages have commented on QCOM. Rosenblatt Securities reiterated a "buy" rating and issued a $190.00 price target on shares of Qualcomm in a research note on Thursday, April 30th. Oppenheimer lowered shares of Qualcomm from a "market perform" rating to a "market perform" rating in a research note on Friday, May 8th. Daiwa Securities Group upgraded shares of Qualcomm from a "neutral" rating to an "outperform" rating and set a $225.00 price target on the stock in a research note on Friday, May 8th. Susquehanna increased their price target 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. Finally, Bank of America began coverage on shares of Qualcomm in a research note on Tuesday, March 10th. They issued an "underperform" rating and a $145.00 price target on the stock. 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. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $181.79.

Qualcomm Trading Up 4.5%

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 market capitalization of $262.26 billion, a PE ratio of 27.05, a price-to-earnings-growth ratio of 29.50 and a beta of 1.49. The business's 50-day moving average price is $156.96 and its 200-day moving average price is $159.19.

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. The business had revenue of $10.60 billion for 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%. The company's revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period last year, the firm posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, analysts expect that Qualcomm Incorporated will post 7.99 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. Stockholders 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 1.5%. This is a boost from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm's payout ratio is 38.70%.

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

Insider Activity

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the business's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $130.34, for a total value of $325,850.00. Following the transaction, the executive vice president directly owned 30,684 shares of the company's stock, valued at approximately $3,999,352.56. The trade was a 7.53% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through 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 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 completion of the transaction, the chief executive officer directly owned 197,568 shares in the company, valued at $35,562,240. This represents a 4.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 19,306 shares of company stock valued at $3,435,583. Corporate insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

Several institutional investors have recently bought and sold shares of the company. Axiom Investment Management LLC acquired a new position in Qualcomm in the 1st quarter valued at $65,000. WNY Asset Management LLC acquired a new position in Qualcomm in the 1st quarter valued at $279,000. Wellington Grp LLC increased its stake in Qualcomm by 100.5% in the 1st quarter. Wellington Grp LLC now owns 417 shares of the wireless technology company's stock valued at $54,000 after buying an additional 209 shares during the period. Vestor Capital LLC increased its stake in Qualcomm by 259.6% in the 1st quarter. Vestor Capital LLC now owns 597 shares of the wireless technology company's stock valued at $77,000 after buying an additional 431 shares during the period. Finally, Groupe la Francaise increased its stake in Qualcomm by 8.0% in the 1st quarter. Groupe la Francaise now owns 34,456 shares of the wireless technology company's stock valued at $4,437,000 after buying an additional 2,553 shares during the period. 74.35% of the stock is owned by institutional investors and hedge funds.

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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