Qualcomm (NASDAQ:QCOM) Trading Down 2.1% – What’s Next?

Qualcomm Incorporated (NASDAQ:QCOM) shares dropped 2.1% during mid-day trading on Tuesday . The company traded as low as $183.50 and last traded at $184.79. Approximately 21,568,247 shares were traded during trading, an increase of 27% from the average daily volume of 17,038,701 shares. The stock had previously closed at $188.72.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Negative Sentiment: Qualcomm was removed from multiple Russell growth and value indices, which can create passive-fund selling pressure and reduce benchmark visibility for the stock. QUALCOMM (QCOM) Stock Just Lost Its Place In Several Russell Indices
• Negative Sentiment: Sentiment also weakened after a Seeking Alpha article called Qualcomm “not the next AI darling” and flagged a rating downgrade, reinforcing concerns that the company may be lagging hotter AI chip names. Qualcomm Stock: Not The Next AI Darling (Rating Downgrade)
• Negative Sentiment: Another report said Google chose MediaTek to build a TPU project, potentially at Qualcomm’s expense, which raises competitive concerns in the AI/semiconductor space. Google taps MediaTek to build Triggerfish TPU, possibly at expense of Broadcom, Qualcomm: GF
• Negative Sentiment: Elon Musk denied reports that SpaceX was using Qualcomm chips in a prototype AI phone, removing a speculative upside catalyst for QCOM. QCOM Stock Slips Toward Fourth Straight Loss After Elon Musk Dismisses Reports Of Space X AI Phone Using Qualcomm Chips
• Neutral Sentiment: Erste Group raised its FY2027 EPS estimate for Qualcomm, a mild fundamental positive, but it does not appear strong enough to offset the current negative sentiment. Qualcomm Incorporated (NASDAQ:QCOM) – Free Report

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Zacks Research raised shares of Qualcomm from a “strong sell” rating to a “hold” rating in a research note on Monday, May 4th. Sanford C. Bernstein increased their price objective on shares of Qualcomm from $140.00 to $235.00 and gave the company a “market perform” rating in a research note on Thursday, June 25th. TD Cowen reissued a “buy” rating and set a $200.00 price objective on shares of Qualcomm in a report on Thursday, June 25th. Raymond James Financial assumed coverage on Qualcomm in a report on Thursday, June 25th. They set a “strong-buy” rating for the company. Finally, HSBC initiated coverage on Qualcomm in a report on Friday, May 8th. They issued a “buy” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twenty have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Qualcomm has an average rating of “Hold” and an average target price of $220.45.

Qualcomm Trading Down 3.0%

The company has a market capitalization of $185.94 billion, a price-to-earnings ratio of 19.12, a P/E/G ratio of 5.50 and a beta of 1.64. 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’s 50 day simple moving average is $204.03 and its two-hundred day simple moving average is $167.90.

Qualcomm (NASDAQ:QCOM) last issued its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business had revenue of $10.60 billion for the quarter, compared to the consensus estimate of $10.59 billion. During the same period in the prior year, the firm posted $2.85 earnings per share. The business’s quarterly revenue 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 7.96 earnings per share for the current fiscal year.

Qualcomm announced that its board has approved a share 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 repurchase up to 14.5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at Qualcomm

In other Qualcomm news, EVP Heather S. Ace sold 3,200 shares of the firm’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $177.82, for a total value of $569,024.00. Following the completion of the transaction, the executive vice president owned 39,735 shares of the company’s stock, valued at approximately $7,065,677.70. This trade represents a 7.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the business’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $180.00, for a total transaction of $1,800,000.00. Following the sale, the chief executive officer directly owned 197,568 shares in the company, valued at $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. Over the last 90 days, insiders have sold 21,721 shares of company stock worth $3,918,290. 0.05% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Your Advocates Ltd. LLP acquired a new stake in Qualcomm during the 1st quarter valued at approximately $26,000. Richardson Financial Services Inc. increased its stake 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 worth $29,000 after acquiring an additional 80 shares during the period. Torren Management LLC purchased a new position in shares of Qualcomm during the fourth quarter worth $29,000. Caitong International Asset Management Co. Ltd lifted its position in Qualcomm by 17,000.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock valued at $29,000 after purchasing an additional 170 shares during the period. Finally, Birchwood Financial Partners Inc. acquired a new position in Qualcomm during the fourth quarter valued at $31,000. 74.35% of the stock is currently owned by hedge funds and other institutional investors.

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.