Qualcomm (NASDAQ:QCOM) Trading Down 5.7% - Time to Sell?

Key Points

• Qualcomm shares fell 5.7% in intraday trading, with unusually heavy volume of about 29.7 million shares as the stock traded as low as $192.67. The move came amid broader weakness in semiconductors and reports of pressure on custom-silicon names.
• Despite the drop, Qualcomm is getting some positive AI and growth-related attention, including Nvidia CEO Jensen Huang publicly praising the stock and a new collaboration with SLB on edge AI solutions for energy operations. Investors are also watching upcoming AI/data-center catalysts such as the June 24 Investor Day and the Dragonfly brand.
• Analyst sentiment is mixed: Wells Fargo downgraded the stock to underweight, while other firms maintained or raised ratings; overall, the consensus remains Hold with an average price target of $181.79. Qualcomm also recently beat quarterly EPS estimates and raised its dividend to $0.92 per share.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s share price was down 5.7% during mid-day trading on Tuesday . The company traded as low as $192.67 and last traded at $205.42. Approximately 29,660,891 shares were traded during mid-day trading, an increase of 83% from the average daily volume of 16,219,368 shares. The stock had previously closed at $217.77.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Nvidia CEO Jensen Huang publicly praised Qualcomm and told investors to “buy their stock,” which sparked after-hours buying and helped lift sentiment around QCOM. Qualcomm shares rise 2% after Nvidia CEO endorses the stock
• Positive Sentiment: Qualcomm and SLB announced a collaboration on edge AI solutions for energy operations, adding another potential growth avenue outside smartphones and reinforcing the company’s AI narrative. SLB, Qualcomm to collaborate on edge AI solutions for energy operations
• Positive Sentiment: Broader investor focus remains on Qualcomm’s upcoming AI/data-center catalysts, including its June 24 Investor Day and the new Dragonfly data-center brand, which could support a higher valuation if management delivers strong updates. Qualcomm jumps as chip stocks rebound and investors refocus on upcoming AI/data-center catalysts
• Neutral Sentiment: Recent short-interest and insider-trading data do not provide a clear fundamental signal for the stock’s move today, though they may keep some traders cautious. Qualcomm jumps as chip stocks rebound and investors refocus on upcoming AI/data-center catalysts
• Negative Sentiment: Qualcomm was hit by weakness across semiconductor stocks as investors rotated out of the group after a strong run, contributing to pressure on QCOM shares. Semiconductor shorts pile on as winning trade reverses
• Negative Sentiment: Reports that Qualcomm dropped on a ByteDance ASIC deal, alongside broader custom-silicon weakness, appear to be a key reason for the stock’s decline. Qualcomm Drops 8% on ByteDance ASIC Deal, Marvell Falls 10% as Custom-Silicon Stocks Slide

Analysts Set New Price Targets

A number of brokerages recently issued reports on QCOM. Wells Fargo & Company downgraded Qualcomm from a "positive" rating to an "underweight" rating in a report on Friday, May 8th. Argus set a $220.00 price objective on shares of Qualcomm in a report on Friday, May 1st. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $160.00 price objective on shares of Qualcomm in a report on Thursday, April 30th. Roth Mkm started coverage on shares of Qualcomm in a report on Friday, May 8th. They set a "buy" rating on the stock. Finally, Craig Hallum raised shares of Qualcomm to a "buy" rating in a report on Friday, May 8th. 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. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $181.79.

Qualcomm Stock 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 stock has a 50 day simple moving average of $178.41 and a two-hundred day simple moving average of $163.75. The company has a market cap of $216.51 billion, a PE ratio of 22.33, a PEG ratio of 26.75 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, beating analysts' consensus estimates of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The company had revenue of $10.60 billion during the quarter, compared to analysts' expectations of $10.59 billion. During the same quarter in the previous year, the business earned $2.85 earnings per share. The firm's revenue for the quarter was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities analysts predict that Qualcomm Incorporated will post 7.99 EPS for the current year.

Qualcomm Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be paid a $0.92 dividend. This is an increase from Qualcomm's previous quarterly dividend of $0.89. This represents a $3.68 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date is Thursday, June 4th. Qualcomm's dividend payout ratio (DPR) is presently 40.00%.

Qualcomm announced that its board has approved a stock buyback program on Tuesday, March 17th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the wireless technology company to reacquire up to 14.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $211.90, for a total transaction of $529,750.00. Following the completion of the sale, the executive vice president owned 28,184 shares in the company, valued at $5,972,189.60. This represents a 8.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 19,306 shares of company stock worth $3,435,583 over the last three months. 0.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Qualcomm

Several large investors have recently modified their holdings of the stock. World Investment Advisors lifted its position in Qualcomm by 14.3% during the 4th quarter. World Investment Advisors now owns 64,911 shares of the wireless technology company's stock worth $11,103,000 after acquiring an additional 8,130 shares in the last quarter. MUFG Securities EMEA plc lifted its position in Qualcomm by 112.2% during the 4th quarter. MUFG Securities EMEA plc now owns 43,986 shares of the wireless technology company's stock worth $7,524,000 after acquiring an additional 23,262 shares in the last quarter. Swedbank AB lifted its position in Qualcomm by 1.5% during the 4th quarter. Swedbank AB now owns 1,533,420 shares of the wireless technology company's stock worth $262,291,000 after acquiring an additional 23,110 shares in the last quarter. NBC Securities Inc. increased its holdings in Qualcomm by 47.5% during the 4th quarter. NBC Securities Inc. now owns 18,691 shares of the wireless technology company's stock worth $3,197,000 after purchasing an additional 6,018 shares during the last quarter. Finally, Sequoia Financial Advisors LLC increased its holdings in Qualcomm by 5.7% during the 4th quarter. Sequoia Financial Advisors LLC now owns 143,690 shares of the wireless technology company's stock worth $24,578,000 after purchasing an additional 7,804 shares during the last quarter. Hedge funds and other institutional investors 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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