Qualcomm (NASDAQ:QCOM) Shares Down 3.1% – Here’s Why

Qualcomm Incorporated (NASDAQ:QCOM) shares fell 3.1% during mid-day trading on Tuesday . The company traded as low as $213.80 and last traded at $214.07. 19,530,547 shares were traded during mid-day trading, an increase of 20% from the average session volume of 16,218,847 shares. The stock had previously closed at $220.81.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm is reportedly discussing a possible acquisition of AI chip startup Tenstorrent, which could expand its AI chip and data-center capabilities. Reuters: Qualcomm in talks to buy Tenstorrent, The Information reports
• Positive Sentiment: CEO Cristiano Amon said Qualcomm is working on more than 40 AI device designs, signaling a broader growth strategy beyond smartphones and into wearables and other next-gen devices. CNBC: Qualcomm CEO says AI agents will replace apps — as chip giant works on 40 new AI-powered devices
• Positive Sentiment: Investor interest is also being supported by Qualcomm’s growing AI infrastructure efforts and anticipation of more details on its data-center strategy. TechCrunch: Qualcomm wants to be the chip inside whatever replaces your smartphone, and it just announced two products toward that end

Analyst Ratings Changes

Several equities analysts recently issued reports on QCOM shares. Melius Research set a $220.00 price target on Qualcomm in a research note on Monday, May 18th. Susquehanna upped their price objective on Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. HSBC started coverage on Qualcomm in a report on Friday, May 8th. They set a “buy” rating on the stock. Wells Fargo & Company restated a “positive” rating on shares of Qualcomm in a report on Friday. Finally, Zacks Research upgraded Qualcomm from a “strong sell” rating to a “hold” rating in a report on Monday, May 4th. Fifteen research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Qualcomm presently has an average rating of “Hold” and an average price target of $184.29.

Qualcomm Price Performance

The company’s 50-day simple moving average is $186.31 and its 200-day simple moving average is $165.26. 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 stock has a market capitalization of $225.83 billion, a price-to-earnings ratio of 23.29, a P/E/G ratio of 26.19 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM) last issued its quarterly earnings data 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. The firm had revenue of $10.60 billion during the quarter, compared to the consensus estimate of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The business’s revenue for the quarter was down 3.5% compared to the same quarter last year. During the same period last year, the business posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Research analysts forecast that Qualcomm Incorporated will post 8 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Shareholders of record on Thursday, June 4th will be given a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 1.7%. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date of this dividend is Thursday, June 4th. Qualcomm’s payout ratio is currently 40.00%.

Qualcomm announced that its Board of Directors has approved a share buyback 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 buy up to 14.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity at Qualcomm

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

Institutional Investors Weigh In On Qualcomm

Institutional investors and hedge funds have recently made changes to their positions in the business. Basepoint Wealth LLC increased its stake in Qualcomm by 1.8% in the 1st quarter. Basepoint Wealth LLC now owns 3,333 shares of the wireless technology company’s stock valued at $429,000 after buying an additional 59 shares during the last quarter. Certified Advisory Corp increased its stake in Qualcomm by 0.6% in the 3rd quarter. Certified Advisory Corp now owns 10,085 shares of the wireless technology company’s stock valued at $1,678,000 after buying an additional 62 shares during the last quarter. ProVise Management Group LLC increased its stake in shares of Qualcomm by 2.6% during the 3rd quarter. ProVise Management Group LLC now owns 2,560 shares of the wireless technology company’s stock worth $426,000 after purchasing an additional 64 shares during the last quarter. Baker Tilly Wealth Management LLC increased its stake in shares of Qualcomm by 1.0% during the 4th quarter. Baker Tilly Wealth Management LLC now owns 6,401 shares of the wireless technology company’s stock worth $1,095,000 after purchasing an additional 64 shares during the last quarter. Finally, Modern Wealth Management LLC increased its stake in shares of Qualcomm by 0.5% during the 1st quarter. Modern Wealth Management LLC now owns 13,704 shares of the wireless technology company’s stock worth $1,744,000 after purchasing an additional 64 shares during the last quarter. Institutional investors and hedge funds own 74.35% of the company’s stock.

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.