Qualcomm (NASDAQ:QCOM) Trading Up 4.2% – Should You Buy?

Qualcomm Incorporated (NASDAQ:QCOM)’s share price shot up 4.2% during trading on Tuesday . The company traded as high as $190.06 and last traded at $187.80. Approximately 13,630,840 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 15,567,331 shares. The stock had previously closed at $180.15.

More Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm’s push into AI data centers is gaining investor attention, with reports suggesting the company has established an early foothold in hyperscaler infrastructure. Success in this market could diversify revenue away from handsets and support a higher valuation. QCOM Stock Climbs To 2-Month High As AI Data Center Push Gains Momentum
• Positive Sentiment: Analysts continue to view automotive, AI and other diversification efforts as potential growth drivers. Qualcomm’s shares have rallied substantially since August, yet some coverage argues the stock still trades at a discount if these initiatives produce meaningful growth. Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off
• Neutral Sentiment: Following the recent run, one analysis describes QCOM as fairly valued, suggesting that much of the AI and diversification optimism may already be reflected in the stock. Qualcomm’s valuation remains moderate by conventional earnings measures, but its PEG ratio indicates investors are paying a premium relative to expected growth. Qualcomm Stock Looks Fairly Priced On Its 80% Run
• Negative Sentiment: Rising semiconductor costs, weaker handset demand and an unfavorable product mix are pressuring margins. Apple’s transition toward internally developed modem technology is also expected to reduce Qualcomm revenue, increasing the importance of new AI, automotive and licensing opportunities. Qualcomm Faces Margin Pressure From Rising Costs: Can It Recover?
• Negative Sentiment: Zacks Research downgraded Qualcomm from “Hold” to “Strong Sell,” adding a bearish signal after the stock’s sharp recovery. A separate report also highlighted insider selling, though that transaction alone is not necessarily evidence of deteriorating fundamentals.

Analyst Upgrades and Downgrades

Several research firms have issued reports on QCOM. Barclays reissued an “underweight” rating on shares of Qualcomm in a report on Wednesday, September 9th. Mizuho lifted their price objective on Qualcomm from $170.00 to $210.00 and gave the company a “neutral” rating in a research report on Monday, June 29th. TD Cowen cut their price objective on Qualcomm from $225.00 to $175.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Susquehanna reduced their target price on shares of Qualcomm from $190.00 to $160.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Finally, Craig Hallum cut shares of Qualcomm from a “buy” rating to a “hold” rating in a research note on Thursday, June 25th. Two analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty-one have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Qualcomm has a consensus rating of “Hold” and a consensus target price of $204.10.

Qualcomm Trading Up 2.1%

The stock has a fifty day simple moving average of $168.39 and a 200 day simple moving average of $171.86. The firm has a market capitalization of $198.18 billion, a P/E ratio of 21.92, a PEG ratio of 3.91 and a beta of 1.68. The company has a quick ratio of 1.28, a current ratio of 2.02 and a debt-to-equity ratio of 0.46.

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

Qualcomm Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be given a dividend of $0.92 per share. The ex-dividend date is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 2.0%. Qualcomm’s dividend payout ratio (DPR) is presently 42.59%.

Insider Transactions at Qualcomm

In related news, CAO Patricia Y. Grech sold 625 shares of the firm’s stock in a transaction on Friday, August 21st. The shares were sold at an average price of $162.85, for a total transaction of $101,781.25. Following the completion of the transaction, the chief accounting officer directly owned 208 shares of the company’s stock, valued at approximately $33,872.80. This trade represents a 75.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Heather S. Ace sold 3,200 shares of Qualcomm stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $147.04, for a total transaction of $470,528.00. Following the completion of the sale, the executive vice president owned 36,535 shares in the company, valued at approximately $5,372,106.40. This represents a 8.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 11,533 shares of company stock valued at $1,924,969. 0.05% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Qualcomm

Several large investors have recently made changes to their positions in QCOM. BlackRock Inc. purchased a new stake in Qualcomm during the second quarter valued at $17,583,115,000. Norges Bank purchased a new position in shares of Qualcomm in the 4th quarter worth $2,591,056,000. Bank of New York Mellon Corp bought a new stake in shares of Qualcomm in the 2nd quarter worth about $1,523,930,000. Deutsche Bank AG purchased a new stake in shares of Qualcomm during the 2nd quarter valued at about $1,178,349,000. Finally, Amundi raised its position in shares of Qualcomm by 94.1% during the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company’s stock valued at $1,884,071,000 after buying an additional 4,942,908 shares in the last quarter. 74.35% of the stock is owned by institutional investors.

About Qualcomm

Qualcomm Incorporated (NASDAQ: QCOM) is a technology company that develops wireless communications technologies, semiconductors and related intellectual property. Headquartered in San Diego, California, the company serves customers and partners worldwide across the mobile, automotive, consumer electronics and industrial markets.

Through its Qualcomm CDMA Technologies (QCT) business, Qualcomm designs and supplies integrated circuits, system software and hardware platforms. Its products include Snapdragon mobile platforms, 5G and other wireless modems, radio-frequency components, connectivity solutions, processors and artificial intelligence technologies.