Qualcomm (NASDAQ:QCOM) Trading Down 9.3% - Here's What Happened

Key Points

• Qualcomm shares fell 9.3% on Tuesday, dropping as low as $218 as investors took profits after a strong run in the stock. Trading volume was lighter than usual, and broader weakness in semiconductors and inflation fears also weighed on the move.
• Despite the selloff, recent sentiment around Qualcomm has been positive thanks to its AI-related growth opportunities in devices, automotive, PCs, and data centers. Tigress Financial even reiterated a Buy rating and raised its price target to $280.
• Wall Street views remain mixed: the consensus rating is Hold with an average target price of $180.37, while recent analysts have issued both bullish and cautious calls. Qualcomm also reported solid quarterly earnings, increased its dividend, and expanded its $20 billion share buyback plan.

Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report)'s stock price fell 9.3% on Tuesday . The stock traded as low as $218.00 and last traded at $215.4680. 8,959,284 shares changed hands during trading, a decline of 37% from the average session volume of 14,332,401 shares. The stock had previously closed at $237.53.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Analysts and bullish commentary continue to highlight Qualcomm’s expanding AI opportunities, including AI devices, automotive, PCs, and server CPU potential, supporting the longer-term growth case.
• Positive Sentiment: Tigress Financial Partners reiterated a Buy rating and raised its price target on Qualcomm to $280 from $270, reinforcing Wall Street confidence in the company’s AI expansion story. Article Title
• Positive Sentiment: Recent reports say Qualcomm is benefiting from strong momentum in AI-related chips and data-center demand, which helped drive the stock to record highs earlier in the week.
• Neutral Sentiment: Some recent analysis suggests Qualcomm’s fundamentals remain attractive, with diversification beyond handsets into automotive and IoT and management guidance indicating a handsets recovery later in 2026. Article Title
• Negative Sentiment: The current pullback reflects profit-taking after a powerful run, with investors selling semiconductor stocks as the broader market weakens and inflation concerns pressure risk assets.
• Negative Sentiment: Some market commentary warns that the AI rally may have become overheated, raising valuation concerns for Qualcomm and other AI-adjacent chip names.

Wall Street Analyst Weigh In

Several analysts have recently commented on QCOM shares. DZ Bank downgraded shares of Qualcomm from a "buy" rating to a "hold" rating and set a $195.00 price objective on the stock. in a research report on Friday. Roth Mkm began coverage on Qualcomm in a research note on Friday. They issued a "buy" rating for the company. Evercore set a $179.00 price target on Qualcomm in a report on Thursday, April 30th. Barclays boosted their price objective on Qualcomm from $130.00 to $150.00 and gave the company an "underweight" rating in a research report on Thursday, April 30th. Finally, Morgan Stanley initiated coverage on Qualcomm in a research report on Friday. They set an "overweight" rating for the company. Fourteen investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $180.37.

Qualcomm Stock Performance

The firm's 50 day simple moving average is $142.08 and its 200 day simple moving average is $156.74. The firm has a market cap of $216.31 billion, a PE ratio of 22.31, a PEG ratio of 27.14 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 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. The firm had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter last year, the business posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, research analysts forecast that Qualcomm Incorporated will post 7.99 EPS for the current fiscal year.

Qualcomm Increases Dividend

The company 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. The ex-dividend date is Thursday, June 4th. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from Qualcomm's previous quarterly dividend of $0.89. Qualcomm's dividend payout ratio is currently 38.70%.

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

Insider Buying and Selling at Qualcomm

In related news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $130.34, for a total value of $325,850.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 192 shares of the business's stock in a transaction that occurred on Thursday, April 30th. The stock was sold at an average price of $172.00, for a total value of $33,024.00. 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 15,977 shares of company stock valued at $2,738,566. Corporate insiders own 0.05% of the company's stock.

Hedge Funds Weigh In On Qualcomm

Several large investors have recently modified their holdings of the stock. Basepoint Wealth LLC raised its stake in shares of Qualcomm by 1.8% in the first quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company's stock valued at $429,000 after acquiring an additional 59 shares during the period. Greykasell Wealth Strategies Inc. raised its position in Qualcomm by 1.5% in the 3rd quarter. Greykasell Wealth Strategies Inc. now owns 4,126 shares of the wireless technology company's stock worth $686,000 after purchasing an additional 61 shares during the period. Certified Advisory Corp lifted its stake in Qualcomm by 0.6% in the third quarter. Certified Advisory Corp now owns 10,085 shares of the wireless technology company's stock worth $1,678,000 after purchasing an additional 62 shares during the last quarter. ProVise Management Group LLC lifted its stake in Qualcomm by 2.6% in the third quarter. ProVise Management Group LLC now owns 2,560 shares of the wireless technology company's stock worth $426,000 after purchasing an additional 64 shares during the last quarter. Finally, Baker Tilly Wealth Management LLC boosted its position in shares of Qualcomm by 1.0% during the fourth quarter. Baker Tilly Wealth Management LLC now owns 6,401 shares of the wireless technology company's stock valued at $1,095,000 after buying an additional 64 shares during the period. Institutional investors own 74.35% of the company's stock.

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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