Qualcomm (NASDAQ:QCOM) Trading 2% Higher – Still a Buy?

Qualcomm Incorporated (NASDAQ:QCOM)’s share price shot up 2% during mid-day trading on Wednesday . The company traded as high as $170.60 and last traded at $169.96. 7,503,944 shares changed hands during trading, a decline of 52% from the average daily volume of 15,647,615 shares. The stock had previously closed at $166.61.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: New mobile gaming technology strengthens Qualcomm’s AI narrative. Qualcomm unveiled Adreno Neural Fusion, a graphics technology designed to use AI for image upscaling and improved gaming performance. The feature is expected to support upcoming Snapdragon flagship processors and could help Qualcomm differentiate its premium mobile platforms. Qualcomm Unveils Adreno Neural Fusion To Supercharge Mobile Gaming The next Snapdragon flagship chip is getting Qualcomm’s take on DLSS
• Positive Sentiment: HUMAIN partnership expands Qualcomm’s AI PC opportunity. Saudi AI company HUMAIN is using Qualcomm’s Snapdragon X2 Elite platform in its Horizon Ultra PC, providing another design win for Qualcomm’s effort to build an AI-enabled PC business and reduce dependence on smartphone chips. Can Qualcomm’s Tie-Up With HUMAIN for AI PC Lift Its Shares?
• Positive Sentiment: Income support remains a modest positive. Qualcomm’s quarterly dividend is $0.92 per share, or $3.68 annually, implying a yield of roughly 2.2% at recent trading levels.
• Neutral Sentiment: Management is reshuffling its device business. Former Motorola Devices president Sergio Buniac will lead Mobile, Compute and Personal AI, covering smartphones, PCs, wearables, XR and emerging AI devices. The appointment could improve execution, but it also comes as Qualcomm faces higher costs and uncertainty around Apple modem revenue. How Investors May Respond To QCOM Naming Sergio Buniac To Lead Mobile, Compute And Personal AI
• Negative Sentiment: Competition and smartphone weakness remain overhangs. Qualcomm’s recent revenue declined year over year, while analysts continue to cite reduced iPhone modem share and a gradual smartphone slowdown. Nvidia’s $3.5 billion investment and technology partnership with rival MediaTek could intensify competition in AI chips for PCs, cars and other markets. Qualcomm rival MediaTek jumps 10% after $3.5 billion Nvidia AI chip deal Qualcomm’s AI Ambitions Run Into a Smartphone Reality Check
• Negative Sentiment: Higher bond yields pressured semiconductor valuations. A global bond selloff caused long-term yields to rise, weighing on higher-multiple technology and semiconductor stocks, including Qualcomm. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields

Analysts Set New Price Targets

Several analysts recently commented on the company. UBS Group lowered their target price on Qualcomm from $190.00 to $170.00 and set a “neutral” rating on the stock in a research report on Thursday, July 30th. Susquehanna reduced their price target on Qualcomm from $190.00 to $160.00 and set a “neutral” rating for the company in a research report on Thursday, July 30th. Lake Street Capital cut Qualcomm to a “hold” rating in a research note on Thursday, June 25th. DZ Bank raised Qualcomm from a “hold” rating to a “buy” rating and set a $265.00 price target on the stock in a report on Friday, June 26th. Finally, Craig Hallum cut shares of Qualcomm from a “buy” rating to a “hold” rating in a research note on Thursday, June 25th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twenty have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Qualcomm has a consensus rating of “Hold” and a consensus price target of $203.76.

Qualcomm Price Performance

The stock has a 50 day moving average of $170.71 and a two-hundred day moving average of $169.24. The stock has a market cap of $178.50 billion, a PE ratio of 19.67, a PEG ratio of 15.74 and a beta of 1.67. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm (NASDAQ:QCOM) last issued its earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing the consensus estimate of $2.23 by ($0.02). The business had revenue of $9.95 billion during the quarter, compared to analyst estimates of $9.69 billion. Qualcomm had a return on equity of 38.36% and a net margin of 21.01%.The business’s quarterly revenue was down 4.0% on a year-over-year basis. During the same period last year, the business earned $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. Equities analysts anticipate that Qualcomm Incorporated will post 7.74 EPS for the current year.

Qualcomm Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be issued a $0.92 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 dividend on an annualized basis and a dividend yield of 2.2%. Qualcomm’s dividend payout ratio is currently 42.59%.

Insiders Place Their Bets

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $163.26, for a total value of $408,150.00. Following the completion of the sale, the executive vice president directly owned 20,684 shares in the company, valued at $3,376,869.84. The trade was a 10.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Patricia Y. Grech sold 208 shares of the company’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $170.00, for a total transaction of $35,360.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 11,533 shares of company stock worth $1,961,219 in the last quarter. 0.05% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

Hedge funds and other institutional investors have recently made changes to their positions in the business. California State Teachers Retirement System increased its stake in Qualcomm by 18,251.8% in the second quarter. California State Teachers Retirement System now owns 301,278,659 shares of the wireless technology company’s stock valued at $55,673,283,000 after acquiring an additional 299,636,973 shares during the period. BlackRock Inc. acquired a new position in shares of Qualcomm during the second quarter worth approximately $17,583,115,000. Norges Bank bought a new position in Qualcomm in the fourth quarter valued at about $2,591,056,000. Bank of New York Mellon Corp bought a new stake in shares of Qualcomm during the 2nd quarter valued at $1,523,930,000. Finally, Deutsche Bank AG acquired a new position in shares of Qualcomm during the 2nd quarter worth about $1,178,349,000. 74.35% of the stock is owned by institutional investors and hedge funds.

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.