Qualcomm (NASDAQ:QCOM) Upgraded to "Buy" at Summit Insights

Key Points

• Summit Insights upgraded Qualcomm from "hold" to "buy", but analyst coverage is mixed — MarketBeat shows a consensus rating of "Hold" with an average target of $159.08.
• Qualcomm beat Q2 estimates with non‑GAAP EPS of $2.65 (vs. $2.56 consensus) yet issued Q3 guidance of $2.10–$2.30 and revenue $9.2B–$10.0B, citing memory‑chip shortages that pressured handset sales and tempered near‑term outlook.
• The board approved a $20 billion stock buyback (up to 14.5% of outstanding shares), and the company said it will begin shipping a custom data‑center chip to a "large hyperscaler" this year, highlighting potential diversification beyond mobile.

Qualcomm (NASDAQ:QCOM - Get Free Report) was upgraded by Summit Insights from a "hold" rating to a "buy" rating in a research report issued on Thursday.

Several other research firms have also recently commented on QCOM. The Goldman Sachs Group started coverage on Qualcomm in a research report on Monday, March 30th. They issued a "neutral" rating and a $135.00 target price on the stock. Piper Sandler restated an "overweight" rating and issued a $200.00 target price on shares of Qualcomm in a research report on Thursday, February 5th. Daiwa Securities Group cut Qualcomm from an "outperform" rating to a "neutral" rating and set a $140.00 target price on the stock. in a research report on Wednesday, February 11th. TD Cowen lowered their target price on Qualcomm from $190.00 to $150.00 and set a "buy" rating on the stock in a research report on Thursday, February 5th. Finally, Barclays restated an "underweight" rating and issued a $150.00 target price on shares of Qualcomm in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Qualcomm has a consensus rating of "Hold" and an average target price of $159.08.

Qualcomm Trading Up 4.0%

NASDAQ:QCOM opened at $156.00 on Thursday. The company has a quick ratio of 1.83, a current ratio of 2.51 and a debt-to-equity ratio of 0.64. The business's 50 day moving average is $134.93 and its two-hundred day moving average is $155.16. Qualcomm has a 52 week low of $121.99 and a 52 week high of $205.95. The company has a market cap of $166.45 billion, a PE ratio of 32.23 and a beta of 1.28.

Qualcomm (NASDAQ:QCOM - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.56 by $0.09. Qualcomm had a return on equity of 44.09% and a net margin of 11.96%.The business had revenue of $10.60 billion for the quarter, compared to the consensus estimate of $10.59 billion. During the same quarter last year, the business posted $2.85 EPS. The business's revenue was down 3.5% on a year-over-year basis. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. On average, analysts predict that Qualcomm will post 8.21 EPS for the current year.

Qualcomm declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, March 17th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the wireless technology company to purchase up to 14.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Qualcomm

In related news, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction on Monday, February 9th. The stock was sold at an average price of $137.00, for a total value of $438,400.00. Following the transaction, the executive vice president directly owned 16,393 shares in the company, valued at $2,245,841. The trade was a 16.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Akash J. Palkhiwala sold 3,333 shares of Qualcomm stock in a transaction on Friday, February 6th. The stock was sold at an average price of $137.65, for a total value of $458,787.45. Following the completion of the transaction, the executive vice president owned 35,599 shares in the company, valued at $4,900,202.35. The trade was a 8.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 9,118 shares of company stock worth $1,233,705. 0.05% of the stock is owned by insiders.

Institutional Trading of Qualcomm

Several large investors have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its holdings in shares of Qualcomm by 116.6% during the fourth quarter. Brighton Jones LLC now owns 17,356 shares of the wireless technology company's stock valued at $2,666,000 after buying an additional 9,343 shares in the last quarter. Revolve Wealth Partners LLC grew its holdings in shares of Qualcomm by 15.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 2,542 shares of the wireless technology company's stock valued at $391,000 after buying an additional 340 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in shares of Qualcomm by 44.3% during the second quarter. Sivia Capital Partners LLC now owns 3,325 shares of the wireless technology company's stock valued at $530,000 after buying an additional 1,020 shares in the last quarter. Main Street Financial Solutions LLC grew its holdings in shares of Qualcomm by 6.1% during the second quarter. Main Street Financial Solutions LLC now owns 5,778 shares of the wireless technology company's stock valued at $920,000 after buying an additional 333 shares in the last quarter. Finally, Transamerica Financial Advisors LLC grew its holdings in shares of Qualcomm by 9.7% during the second quarter. Transamerica Financial Advisors LLC now owns 6,800 shares of the wireless technology company's stock valued at $1,083,000 after buying an additional 603 shares in the last quarter. 74.35% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: CEO optimism on smartphones and AI/data‑center opportunities lifted investor sentiment; management framed the near‑term weakness as mainly memory‑supply related while emphasizing recovery potential. Read More.
• Positive Sentiment: Qualcomm said it will begin shipping a custom data‑center chip to a “large hyperscaler” within the calendar year — a potential new revenue stream beyond mobile that drove the rally. Read More.
• Positive Sentiment: Q2 beat on EPS (non‑GAAP $2.65) and strong per‑share profitability metrics helped offset top‑line weakness and gave investors confidence in margins and cash flow. Read More.
• Neutral Sentiment: Automotive and IoT growth are bright spots—management highlighted traction in those end markets, which supports longer‑term diversification but won’t fully offset consumer memory shortages near term. Read More.
• Negative Sentiment: Third‑quarter guidance came in below consensus (revenue $9.2B–$10.0B; adj. EPS $2.10–$2.30), citing a memory‑chip shortage that will likely pressure handset demand and near‑term revenue. That weak outlook triggered an initial selloff before the AI/datacenter news reversed sentiment. Read More.
• Negative Sentiment: Handset revenue declined materially (reports note ~13% drop in handset sales) and inventories rose; these topline headwinds increase downside risk if memory supply or China smartphone orders don’t recover. Read More.
• Negative Sentiment: Analyst estimate tweaks and mixed price targets remain a restraint; some firms trimmed FY estimates ahead of the print, reflecting uncertainty around recovery timing. Read More.

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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