Qualcomm (NASDAQ:QCOM) Shares Down 5.8% – Should You Sell?

Shares of Qualcomm Incorporated (NASDAQ:QCOM) were down 5.8% during trading on Friday . The stock traded as low as $175.97 and last traded at $177.72. 54,296,814 shares traded hands during trading, an increase of 245% from the average daily volume of 15,730,031 shares. The stock had previously closed at $188.71.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm CEO Cristiano Amon is reportedly expected to attend the September 24 Trump-Xi summit alongside leaders from OpenAI and NVIDIA. Potential discussions involving AI standards, chip access and development could improve Qualcomm’s visibility in the AI ecosystem. Trump-Xi Dinner Next Week Brings AI Titans To The Table
• Positive Sentiment: Some coverage continues to view QCOM as inexpensive at roughly 22 times earnings compared with other semiconductor stocks. Qualcomm’s expansion from smartphone chips into AI infrastructure could eventually eliminate that valuation discount if the strategy gains traction. Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off
• Neutral Sentiment: Analyst sentiment remains mixed: the consensus rating is “Hold,” while Zacks Research downgraded the stock to “Strong Sell.” The conflicting views suggest investors are weighing Qualcomm’s cash generation and valuation against slowing fundamentals. Qualcomm Receives Consensus Rating of Hold
• Negative Sentiment: Investors are questioning Qualcomm’s AI pivot, with analysts arguing that the opportunity may not yet offset weakness in its core handset business. Concerns include rising semiconductor costs, unfavorable product mix, weaker phone demand and an expected decline in Apple-related revenue. Qualcomm’s AI Pivot Has a Problem
• Negative Sentiment: The immediate decline appears to be partly a reversal of the recent rally, as traders lock in gains after QCOM’s strong monthly advance. The stock also remains vulnerable to broad semiconductor-sector volatility and profit-taking. Qualcomm Drops as Past Month’s Rally Unwinds

Analysts Set New Price Targets

Several brokerages have recently issued reports on QCOM. Royal Bank Of Canada upped their target price on shares of Qualcomm from $160.00 to $180.00 and gave the stock a “sector perform” rating in a research note on Wednesday, September 9th. Bank of America raised their price target on shares of Qualcomm from $165.00 to $195.00 and gave the company an “underperform” rating in a research report on Tuesday, June 23rd. Oppenheimer set a $200.00 price objective on shares of Qualcomm in a report on Monday, July 27th. Barclays reaffirmed an “underweight” rating on shares of Qualcomm in a research report on Wednesday, September 9th. Finally, Evercore set a $159.00 target price on Qualcomm in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-one have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $204.10.

Qualcomm Stock Performance

The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02. The firm has a market cap of $186.65 billion, a P/E ratio of 20.57, a P/E/G ratio of 3.85 and a beta of 1.68. The business’s 50-day simple moving average is $168.34 and its 200 day simple moving average is $172.19.

Qualcomm (NASDAQ:QCOM) last posted its earnings results 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 firm had revenue of $9.95 billion during the quarter, compared to the consensus estimate of $9.69 billion. Qualcomm had a net margin of 21.01% and a return on equity of 38.36%. The firm’s revenue was down 4.0% compared to the same quarter last year. During the same period in the prior year, the company posted $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, equities analysts predict that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 3rd will be issued a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is currently 42.59%.

Insider Buying and Selling at Qualcomm

In other Qualcomm news, EVP Akash J. Palkhiwala sold 2,500 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $182.85, for a total transaction of $457,125.00. Following the sale, the executive vice president owned 18,184 shares in the company, valued at approximately $3,324,944.40. This trade represents a 12.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 that occurred 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 transaction, the executive vice president directly owned 36,535 shares in the company, valued at $5,372,106.40. This represents a 8.05% decrease in their position. 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 quarter, insiders sold 11,533 shares of company stock valued at $1,924,969. Company insiders own 0.05% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of QCOM. BlackRock Inc. purchased a new stake in Qualcomm during the 2nd quarter valued at approximately $17,583,115,000. Geode Capital Management LLC lifted its holdings in shares of Qualcomm by 12.5% in the fourth quarter. Geode Capital Management LLC now owns 28,897,079 shares of the wireless technology company’s stock worth $4,931,968,000 after buying an additional 3,221,924 shares in the last quarter. Van ECK Associates Corp lifted its holdings in shares of Qualcomm by 22.7% in the second quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock worth $3,178,872,000 after buying an additional 3,179,720 shares in the last quarter. Norges Bank bought a new position in shares of Qualcomm during the fourth quarter worth $2,591,056,000. Finally, Invesco Ltd. grew its stake in Qualcomm by 28.1% during the fourth quarter. Invesco Ltd. now owns 12,645,603 shares of the wireless technology company’s stock valued at $2,163,030,000 after acquiring an additional 2,771,490 shares in the last quarter. Hedge funds and other institutional investors own 74.35% of the company’s stock.

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.