Qualcomm (NASDAQ:QCOM) Trading Up 5.3% - Still a Buy?

Key Points

• Shares rose about 5% on heavy volume as investors reacted to a reported hyperscaler AI win and a newly authorized $20 billion buyback, driving an AI‑momentum trade and valuation re‑rating.
• Fundamentals are mixed: Qualcomm beat Q2 EPS but revenue fell roughly 3.5% year‑over‑year and guidance is cautious, with supply constraints, rising competition and elevated R&D spending posing execution risks.
• Analysts are divided — the consensus rating is Hold with an average target of $172.40, while individual price targets span widely from about $100 to $300.

Shares of Qualcomm Incorporated (NASDAQ:QCOM - Get Free Report) rose 5.3% on Thursday . The stock traded as high as $223.66 and last traded at $202.7480. Approximately 50,738,554 shares traded hands during mid-day trading, an increase of 268% from the average daily volume of 13,799,621 shares. The stock had previously closed at $192.57.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Hyperscaler AI win + $20B buyback — Qualcomm’s reported hyperscaler custom AI silicon program and the $20 billion buyback are being treated as a structural pivot into AI infrastructure and a strong capital-return signal that supports EPS and valuation re-rating. QUALCOMM (QCOM) Is Up 12.1% After Hyperscaler AI Win And $20 Billion Buyback Announcement
• Positive Sentiment: AI momentum trade is driving heavy buying — News coverage and momentum flows around Qualcomm’s AI positioning triggered outsized buying today as traders piled into what many view as inexpensive AI exposure relative to peers. Qualcomm stock surges 15% on AI momentum trade
• Positive Sentiment: Buyback + Snap AR partnership broaden growth narrative — A fresh $20B repurchase authorization plus partnership activity (e.g., Snap AR) reinforce a pivot beyond handsets into AR/IoT and services, giving investors more conviction in multi-year growth potential. Qualcomm Climbs 8% as Buyback, Snap AR Partnership Power Pivot Beyond Smartphones
• Positive Sentiment: Valuation/“cheap AI” thesis attracting capital — Commentaries framing QCOM as an undervalued way to play AI silicon (relative to peers) are helping close the valuation gap and pushing a re-rating. Qualcomm Is One of the Cheapest AI Stocks
• Neutral Sentiment: Q2 earnings were mixed — Qualcomm beat EPS but revenue dipped year-over-year and guidance is cautious (Q3 EPS range), so fundamentals are supportive but not unequivocally bullish. A Look At Qualcomm (QCOM) Valuation After Strong Q2 Results And AI Focused Expansion
• Neutral Sentiment: Product refreshes (midrange chips with Wi‑Fi 7) are incremental positives but unlikely to be primary drivers of today’s move. Qualcomm's New Midrange Chips Add Wi‑Fi 7
• Negative Sentiment: Supply constraints and revenue mix risks — Investor letters and commentary flagged memory-related supply issues and a year-over-year revenue decline in handsets, highlighting execution and cyclical risks that could cap upside if product demand softens. QUALCOMM Slipped Over Memory-Related Supply Constraints
• Negative Sentiment: Rising competition and higher R&D burden — Analysts note increased competitive pressure and elevated R&D spend that could weigh on margins if new AI/data-center programs take longer to scale. Should QCOM Stock Be Part of Your Portfolio Post Modest Q2 Earnings?

Analysts Set New Price Targets

QCOM has been the subject of several research analyst reports. Bank of America began coverage on shares of Qualcomm in a research note on Tuesday, March 10th. They set an "underperform" rating and a $145.00 target price for the company. Seaport Research Partners reaffirmed a "sell" rating and issued a $100.00 target price on shares of Qualcomm in a report on Monday, March 16th. Loop Capital upgraded Qualcomm from a "hold" rating to a "buy" rating and set a $185.00 price target for the company in a report on Tuesday, February 24th. Evercore set a $179.00 target price on Qualcomm in a research report on Thursday, April 30th. Finally, Robert W. Baird set a $300.00 price objective on shares of Qualcomm in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, sixteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $172.40.

Qualcomm Price Performance

The company has a quick ratio of 1.61, a current ratio of 2.37 and a debt-to-equity ratio of 0.54. The company has a market capitalization of $213.70 billion, a PE ratio of 22.04, a price-to-earnings-growth ratio of 23.02 and a beta of 1.49. The firm's 50 day simple moving average is $137.61 and its 200 day simple moving average is $155.61.

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 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 the consensus estimate of $10.59 billion. During the same quarter in the prior year, the firm posted $2.85 earnings per share. The business'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. As a group, research analysts anticipate that Qualcomm Incorporated will post 8.02 EPS 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 annualized dividend and a dividend yield of 1.8%. This is a boost from Qualcomm's previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm's dividend payout ratio (DPR) is presently 40.00%.

Qualcomm declared that its board has approved a share repurchase plan 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 reacquire up to 14.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company's board believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Heather S. Ace sold 3,200 shares of the business's stock in a transaction on Monday, February 9th. The stock was sold at an average price of $137.00, for a total transaction of $438,400.00. Following the completion of the transaction, the executive vice president owned 16,393 shares in the company, valued at $2,245,841. The trade was a 16.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Cristiano R. Amon sold 10,000 shares of Qualcomm stock in a transaction on 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 sale, the chief executive officer owned 197,568 shares of the company's stock, valued at approximately $35,562,240. This trade 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. Insiders have sold 22,510 shares of company stock worth $3,635,753 in the last 90 days. 0.05% of the stock is owned by insiders.

Institutional Trading of Qualcomm

Institutional investors and hedge funds have recently modified their holdings of the stock. Your Advocates Ltd. LLP purchased a new stake in shares of Qualcomm in the 1st quarter worth $26,000. Cloud Capital Management LLC purchased a new position in shares of Qualcomm during the third quarter valued at $27,000. Richardson Financial Services Inc. raised its holdings in shares of Qualcomm by 90.9% in the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company's stock valued at $29,000 after acquiring an additional 80 shares in the last quarter. Torren Management LLC purchased a new stake in Qualcomm in the fourth quarter worth about $29,000. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Qualcomm by 17,000.0% in the fourth 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 during the period. 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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