Qualcomm (NASDAQ:QCOM) Trading Down 3.9% – What’s Next?

Qualcomm Incorporated (NASDAQ:QCOM) shares were down 3.9% during trading on Wednesday . The stock traded as low as $191.02 and last traded at $196.1140. 23,529,853 shares traded hands during mid-day trading, an increase of 42% from the average session volume of 16,621,422 shares. The stock had previously closed at $204.13.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm raised its fiscal 2029 non-handset revenue target to $40 billion, nearly double the prior goal, signaling a much larger business mix beyond handsets. Qualcomm Accelerates Diversification with Comprehensive Strategy for Data Center and Sees Multiple Inflection Points Over the Next 3 to 5 Years
• Positive Sentiment: The company unveiled a data center roadmap targeting more than $15 billion in AI infrastructure revenue by fiscal 2029, which investors see as a meaningful new growth engine. Qualcomm Unveils Comprehensive Data Center Roadmap for the Agentic AI Era with New Qualcomm Dragonfly Portfolio
• Positive Sentiment: Qualcomm announced a multi-generation data center CPU agreement with Meta, and Microsoft also backed the company’s AI infrastructure plans, giving the strategy credibility with major hyperscale customers. Qualcomm and Meta Announce Strategic Multi-Generation Agreement on Data Center CPUs
• Positive Sentiment: Qualcomm agreed to acquire Modular for about $3.9 billion, expanding its AI software capabilities and strengthening its position in the cloud and edge AI stack. Qualcomm extends AI infrastructure presence with $3.9B acquisition of Modular
• Positive Sentiment: Several analysts turned more constructive after the update, with upgrades and higher price targets reinforcing the idea that Qualcomm’s diversification is happening faster than expected. QCOM stock jumps as Wall Street embraces Qualcomm’s AI data center pivot — Morgan Stanley says it was ‘wrong to be skeptical’
• Neutral Sentiment: Media commentary and bullish investor-day coverage suggest sentiment is improving, but these pieces largely reflect the same catalyst: Qualcomm’s AI and data center pivot. Micron and Qualcomm forecasts ignite $400 billion AI chip stock rally
• Negative Sentiment: Risks remain that Qualcomm’s handset business continues to slow, while building out data center operations and AI software will require heavy investment and could pressure margins near term.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on QCOM shares. DZ Bank raised Qualcomm from a “hold” rating to a “buy” rating and set a $265.00 price target on the stock in a research note on Friday. JPMorgan Chase & Co. boosted their target price on Qualcomm from $160.00 to $265.00 and gave the company a “neutral” rating in a research note on Friday, June 5th. Freedom Capital lowered shares of Qualcomm from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Robert W. Baird set a $300.00 price target on shares of Qualcomm in a research note on Friday, May 1st. Finally, Barclays raised Qualcomm from an “underweight” rating to an “overweight” rating in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, twenty have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $218.03.

Qualcomm Price 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 firm’s 50 day moving average is $199.96 and its 200 day moving average is $167.69. The firm has a market cap of $204.67 billion, a P/E ratio of 21.11, a price-to-earnings-growth ratio of 24.50 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM) last announced its earnings results 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 net margin of 22.31% and a return on equity of 42.11%. The business had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. During the same quarter last year, the firm earned $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, analysts anticipate that Qualcomm Incorporated will post 7.98 earnings per share for the current year.

Qualcomm Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Thursday, June 4th were issued a dividend of $0.92 per share. The ex-dividend date was Thursday, June 4th. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. This represents a $3.68 annualized dividend and a dividend yield of 1.9%. Qualcomm’s dividend payout ratio is 40.00%.

Qualcomm declared that its board has initiated a stock repurchase program on Tuesday, March 17th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the wireless technology company to buy up to 14.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity

In related news, EVP Akash J. Palkhiwala sold 2,500 shares of the stock in a transaction dated Monday, April 13th. The shares were sold at an average price of $130.34, for a total transaction of $325,850.00. Following the sale, the executive vice president directly owned 30,684 shares of the company’s stock, valued at approximately $3,999,352.56. This represents a 7.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 829 shares of the firm’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $201.77, for a total transaction of $167,267.33. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 21,806 shares of company stock worth $3,928,958. 0.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Qualcomm

Several institutional investors and hedge funds have recently made changes to their positions in the company. Norges Bank purchased a new position in shares of Qualcomm in the fourth quarter worth $2,591,056,000. Wellington Management Group LLP raised its position in Qualcomm by 141.8% in the 3rd quarter. Wellington Management Group LLP now owns 12,437,240 shares of the wireless technology company’s stock worth $2,069,059,000 after buying an additional 7,292,783 shares during the last quarter. Geode Capital Management LLC lifted its stake in Qualcomm by 12.5% during the 4th quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock valued at $4,931,968,000 after acquiring an additional 3,221,924 shares during the period. Invesco Ltd. lifted its stake in Qualcomm by 28.1% during the 4th quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company’s stock valued at $2,163,030,000 after acquiring an additional 2,771,490 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in shares of Qualcomm by 36.8% during the 3rd quarter. Dimensional Fund Advisors LP now owns 6,552,427 shares of the wireless technology company’s stock valued at $1,090,025,000 after acquiring an additional 1,764,252 shares during the last quarter. 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.