Qualcomm (NASDAQ:QCOM) Trading Down 4.2% - Here's Why

Key Points

• Qualcomm shares fell 4.2% to $162.88 amid a pullback ahead of the company’s July 29 earnings report, with the stock testing technical support and trading below its 50-day moving average.
• Potential growth drivers include reported price increases and expansion into automotive, AI, IoT and data centers, but continued smartphone weakness—especially in China—and cautious earnings guidance remain key risks.
• Analysts have a consensus “Hold” rating and a $222.77 target price. Qualcomm recently reported better-than-expected quarterly EPS, declared a $0.92 quarterly dividend, and expects to pay an annualized $3.68 per share.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price traded down 4.2% on Tuesday . The stock traded as low as $162.16 and last traded at $162.88. 15,886,316 shares were traded during trading, a decline of 4% from the average daily volume of 16,511,223 shares. The stock had previously closed at $170.04.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm has reportedly told customers it will raise prices, a move that could support revenue and margins if successfully implemented. Huge News for Qualcomm Stock Investors
• Positive Sentiment: The company is expanding beyond smartphones into automotive, AI-enabled vehicle platforms, IoT and data-center opportunities. Its participation in Micron’s long-term automotive supply agreements reinforces the potential for more diversified growth and reduced handset dependence. What Qualcomm’s Dividend Payout and Automotive AI Push Means For Shareholders
• Positive Sentiment: Analysts and investors see valuation support, with one analysis suggesting QCOM could be below fair value if automotive and data-center revenue develops as projected. Qualcomm also continues to return capital, including a recently declared quarterly dividend of $0.92 per share. QUALCOMM Could Be 25% Below Fair Value
• Neutral Sentiment: Qualcomm has a strong earnings-surprise history, and 5G demand, AI, IoT and network upgrades could help the company beat quarterly estimates. However, investors are waiting for the actual results and outlook before assigning greater confidence. Will Qualcomm Beat Estimates Again?
• Negative Sentiment: The stock is testing technical support ahead of earnings after a substantial pullback, increasing sensitivity to any weak guidance or disappointing handset trends. Qualcomm Stock Tests Technical Support Ahead of Earnings
• Negative Sentiment: Ongoing handset weakness, particularly in China, remains a key risk while Qualcomm transitions toward newer growth markets. Investors may therefore focus closely on smartphone demand, automotive execution and management’s earnings outlook. Qualcomm Is Diversifying Beyond Handsets

Analysts Set New Price Targets

A number of research analysts have recently issued reports on QCOM shares. Robert W. Baird set a $300.00 target price on shares of Qualcomm in a research note on Friday, May 1st. Freedom Capital lowered Qualcomm from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 13th. Argus set a $220.00 price target on Qualcomm in a report on Friday, May 1st. Citigroup lifted their price objective on Qualcomm from $160.00 to $198.00 and gave the company a "neutral" rating in a research report on Thursday, June 25th. Finally, Raymond James Financial assumed coverage on Qualcomm in a research note on Thursday, June 25th. They issued a "strong-buy" rating on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty-one have issued a Hold rating and one has assigned 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 $222.77.

Qualcomm Stock Performance

The stock's 50 day simple moving average is $202.85 and its two-hundred day simple moving average is $168.25. The company has a market capitalization of $171.68 billion, a P/E ratio of 17.70, a P/E/G ratio of 4.96 and a beta of 1.63. 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 results on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, beating 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 business had revenue of $10.60 billion for the quarter, compared to analysts' expectations of $10.59 billion. During the same period in the prior year, the firm earned $2.85 earnings per share. Qualcomm'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. As a group, research analysts expect that Qualcomm Incorporated will post 7.97 earnings per share for the current year.

Qualcomm Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be given a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date is Thursday, September 3rd. Qualcomm's dividend payout ratio (DPR) is presently 40.00%.

Insider Transactions at Qualcomm

In related news, EVP Heather S. Ace sold 3,200 shares of the firm's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $177.82, for a total value of $569,024.00. Following 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 Qualcomm stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $180.00, for a total value of $1,800,000.00. Following the completion of the sale, the chief executive officer 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 21,721 shares of company stock valued at $4,044,465 over the last quarter. Corporate insiders own 0.05% of the company's stock.

Institutional Trading of Qualcomm

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. JFS Wealth Advisors LLC raised its position in shares of Qualcomm by 3.4% during the 2nd quarter. JFS Wealth Advisors LLC now owns 1,595 shares of the wireless technology company's stock valued at $295,000 after acquiring an additional 53 shares during the last quarter. Wall Street Financial Group Inc. lifted its stake in shares of Qualcomm by 1.9% in the 2nd quarter. Wall Street Financial Group Inc. now owns 3,050 shares of the wireless technology company's stock valued at $564,000 after purchasing an additional 57 shares during the period. Sunbeam Capital Management LLC boosted its position in shares of Qualcomm by 3.7% in the 2nd quarter. Sunbeam Capital Management LLC now owns 1,637 shares of the wireless technology company's stock worth $303,000 after purchasing an additional 58 shares during the last quarter. Basepoint Wealth LLC boosted its position in shares of Qualcomm by 1.8% in the 1st quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company's stock worth $429,000 after purchasing an additional 59 shares during the last quarter. Finally, Five Oceans Advisors boosted its position in shares of Qualcomm by 3.3% in the 2nd quarter. Five Oceans Advisors now owns 1,827 shares of the wireless technology company's stock worth $338,000 after purchasing an additional 59 shares during the last quarter. 74.35% of the stock is owned by institutional investors.

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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