Qualcomm: This Week Could Make or Break the Rally

Key Points

• Qualcomm is up 25% since April but is struggling to extend gains.
• The stock’s valuation remains attractive, yet sentiment is turning mixed.
• Analysts are split, and the coming days could determine the stock’s next major move.

Qualcomm Inc NASDAQ: QCOM closed just above $150 on Friday, up a solid 25% from its multi-year low set in April. While that rebound initially looked like the beginning of a breakout, momentum has since stalled. The stock has started to consolidate and now sits at the lower end of the trading range it occupied for much of last year.

That sideways action is frustrating for long-term investors. Qualcomm is one of the most recognizable names in semiconductors, arguably the hottest sector in tech, but it continues to underperform many of its peers. Despite a relatively low valuation and a string of decent earnings reports, the stock has failed to generate the kind of momentum seen in rivals like NVIDIA Corp NASDAQ: NVDA or Advanced Micro Devices Inc NASDAQ: AMD.

Valuation Alone Isn’t Enough

One of Qualcomm's main bull cases continues to be its valuation. The company trades at a discount to most major semiconductor stocks on a forward price-to-earnings basis, a setup that has made it attractive to value-oriented investors. But that discount has yet to translate into real relative strength.

For now, the market seems unconvinced that a cheap multiple is enough. The company’s modest guidance, plus a mixed reception from analysts, has made it difficult for the stock to build momentum despite the broader rally in chip names.

Recent results were solid but unspectacular. Revenue trends in handsets and automotive were stable, while its Internet of Things segment posted modest gains.

Qualcomm has done a respectable job managing through headwinds, but the lack of a clear upside catalyst is keeping enthusiasm muted.

Analysts Are Divided

Sentiment among Wall Street analysts reflects the stock's uncertainty. Earlier this month, Susquehanna and Baird reiterated their Buy ratings, pointing to the company’s improving execution and continued relevance in key end markets.

However, those positive calls have been offset by a series of Hold and Neutral ratings that show not everyone is convinced.

Morgan Stanley’s Joseph Moore maintained an Equal-Weight rating and a $163 price target earlier this month after its earnings report. While acknowledging that the company’s fundamentals remain intact, he admitted to being surprised by the stock’s weakness. Moore flagged Qualcomm’s “optimized earnings power” and warned that it could be difficult for the company to expand beyond its current profit potential without a new growth driver.

Wells Fargo’s Aaron Rakers took a more cautious view. He reiterated an Underweight rating and cut his price target from $175 to $140, citing Qualcomm’s exposure to China and consumer markets, as well as increasing risks tied to Apple and tariffs. In his view, those headwinds outweigh the positives and warrant a more conservative outlook.

The Setup for a Pivotal Week

The next few sessions could prove pivotal with the stock now back near key technical support and showing signs of indecision. If shares can reclaim their recent highs and break through $160 with volume, it would restore confidence and validate the recent uptrend. But if the bulls can’t maintain the upward trajectory, it may reinforce the idea that Qualcomm is stuck in a holding pattern that no amount of value appeal can break on its own.

The broader semiconductor space is also watching. With chip stocks continuing to power the NASDAQ higher, laggards like Qualcomm stand out more starkly. That visibility can work both ways, either creating pressure for a catch-up rally or drawing capital away toward faster-moving names.

What Qualcomm Needs to Win Back Investors

The market wants more from Qualcomm than stability. It wants vision, clarity, and a compelling reason to believe that the company can rejoin the list of elite semiconductor performers. That may require fresh product wins, new strategic announcements, or better-than-expected performance in its key segments.

Until then, Qualcomm may remain a value trap, attractive on paper but hard to own with confidence. The next few trading days could go a long way toward determining which narrative takes hold heading into the summer.