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

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

More Qualcomm News

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 research analysts have recently issued reports on QCOM shares. Tigress Financial raised their price target on shares of Qualcomm from $270.00 to $280.00 and gave the stock a “buy” rating in a research note on Friday, May 8th. Susquehanna raised their price target on shares of Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Melius Research set a $220.00 price target on shares of Qualcomm in a research note on Monday, May 18th. Citigroup raised their price target on shares of Qualcomm from $140.00 to $160.00 and gave the stock a “neutral” rating in a research note on Thursday, April 30th. Finally, Craig Hallum upgraded shares of Qualcomm to a “buy” rating in a research note on Friday, May 8th. Fifteen 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’s stock. According to MarketBeat, Qualcomm has an average rating of “Hold” and a consensus price target of $184.29.

Qualcomm Stock Performance

The company’s fifty day moving average is $186.31 and its 200 day moving average is $165.26. The company has a market capitalization of $225.83 billion, a P/E ratio of 23.29, a P/E/G ratio of 26.19 and a beta of 1.59. The company has a current ratio of 2.37, a quick ratio of 1.61 and a debt-to-equity ratio of 0.54.

Qualcomm (NASDAQ:QCOM) last released its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 EPS for the quarter, topping the consensus estimate of $2.56 by $0.09. The company 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%. Qualcomm’s revenue for the quarter was down 3.5% on a year-over-year basis. During the same period last year, the firm earned $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, equities analysts anticipate that Qualcomm Incorporated will post 8 earnings per share for the current 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 issued a $0.92 dividend. This represents a $3.68 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Thursday, June 4th. This is a positive change from Qualcomm’s previous quarterly dividend of $0.89. Qualcomm’s payout ratio is 40.00%.

Qualcomm declared that its Board of Directors has approved a stock buyback plan on Tuesday, March 17th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the wireless technology company to repurchase up to 14.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm’s stock in a transaction on Monday, April 13th. The shares were sold at an average price of $130.34, for a total value of $325,850.00. Following the completion of the transaction, the executive vice president directly owned 30,684 shares of the company’s stock, valued at $3,999,352.56. This trade represents a 7.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 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 transaction of $569,024.00. Following the completion of the transaction, the executive vice president directly owned 39,735 shares of the company’s stock, valued at approximately $7,065,677.70. The trade was a 7.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 21,806 shares of company stock valued at $3,928,958 in the last quarter. 0.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Basepoint Wealth LLC boosted its holdings 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 purchasing an additional 59 shares during the period. Certified Advisory Corp boosted its holdings 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 purchasing an additional 62 shares during the period. ProVise Management Group LLC boosted its holdings in Qualcomm by 2.6% in the 3rd quarter. ProVise Management Group LLC now owns 2,560 shares of the wireless technology company’s stock valued at $426,000 after purchasing an additional 64 shares during the period. Baker Tilly Wealth Management LLC lifted its holdings 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 acquiring an additional 64 shares during the last quarter. Finally, Modern Wealth Management LLC lifted its holdings 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 acquiring an additional 64 shares during the last quarter. 74.35% of the stock is owned by institutional investors.

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.