Qualcomm (NASDAQ:QCOM) Trading Up 9.3% – Still a Buy?

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price was up 9.3% on Monday . The stock traded as high as $195.31 and last traded at $194.23. Approximately 18,206,548 shares traded hands during trading, an increase of 16% from the average session volume of 15,722,643 shares. The stock had previously closed at $177.72.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm, Lumentum and Corning are showcasing an optical die-to-die interconnect designed for AI systems. The demonstration supports Qualcomm’s effort to participate in data-center and AI infrastructure spending, broadening its growth story beyond handsets. Lumentum, Qualcomm, Corning to Showcase Optical D2D Interconnect for AI
• Positive Sentiment: Investor enthusiasm was amplified ahead of Qualcomm’s Snapdragon Summit, where the company is expected to provide updates on its smartphone-chip roadmap and potentially its broader AI strategy. Qualcomm stock jumps as AI rally returns ahead of Snapdragon Summit
• Positive Sentiment: Lower oil prices and Treasury yields helped revive appetite for growth-oriented technology and semiconductor stocks, providing a favorable market backdrop for QCOM. Qualcomm stock jumps as AI rally returns ahead of Snapdragon Summit
• Positive Sentiment: Investors are increasingly focused on Qualcomm’s automotive and data-center opportunities. Management expects two custom data-center programs to begin generating revenue in the December quarter, potentially helping offset a shrinking Apple-related business. Can Cars And Data Centers Carry Qualcomm Stock Past Apple?
• Neutral Sentiment: Prospects for more successful U.S.-China trade discussions could reduce tariff risks for semiconductor companies and benefit China-exposed technology businesses, although the eventual policy impact remains uncertain. U.S.-China Talks Seem Successful
• Negative Sentiment: Risks remain from Qualcomm’s reliance on smartphones, pressure from the declining Apple business and the stock’s elevated expectations after a strong longer-term advance. Recent volatility and bearish commentary underscore concerns that new automotive and data-center revenue may take time to scale. Bear of the Day: Qualcomm

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Royal Bank Of Canada increased their target price on shares of Qualcomm from $160.00 to $180.00 and gave the company a “sector perform” rating in a research report on Wednesday, September 9th. Zacks Research lowered Qualcomm from a “hold” rating to a “strong sell” rating in a report on Tuesday, September 15th. Dbs Bank upgraded Qualcomm to a “moderate buy” rating in a research report on Tuesday, July 7th. UBS Group reduced their target price on Qualcomm from $190.00 to $170.00 and set a “neutral” rating for the company in a report on Thursday, July 30th. Finally, Freedom Capital raised Qualcomm from a “hold” rating to a “strong-buy” rating in a research report on Friday, August 7th. Two investment 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average 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 current ratio of 2.02 and a quick ratio of 1.28. The stock’s 50-day moving average is $168.11 and its 200 day moving average is $172.45. The stock has a market cap of $203.99 billion, a price-to-earnings ratio of 22.48, a P/E/G ratio of 3.70 and a beta of 1.68.

Qualcomm (NASDAQ:QCOM) last announced 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 for 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 company’s revenue was down 4.0% on a year-over-year basis. During the same period in the prior year, the company earned $2.77 EPS. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS. As a group, analysts predict that Qualcomm Incorporated will post 7.74 earnings per share for the current fiscal year.

Qualcomm Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd will be paid a dividend of $0.92 per share. The ex-dividend date of this dividend is Thursday, September 3rd. This represents a $3.68 annualized dividend and a dividend yield of 1.9%. Qualcomm’s payout ratio is 42.59%.

Insiders Place Their Bets

In other news, CAO Patricia Y. Grech sold 208 shares of the firm’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $170.00, for a total transaction of $35,360.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 the business’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $147.04, for a total value of $470,528.00. Following the completion of the transaction, the executive vice president directly owned 36,535 shares of the company’s stock, valued at approximately $5,372,106.40. This trade represents a 8.05% decrease in their ownership of the stock. 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 ninety days, insiders have sold 11,533 shares of company stock worth $1,924,969. 0.05% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Qualcomm

Institutional investors have recently modified their holdings of the company. Baxter Bros Inc. purchased a new position in Qualcomm during the second quarter worth about $17,844,000. MUFG Securities EMEA plc grew its stake in Qualcomm by 112.2% during the fourth quarter. MUFG Securities EMEA plc now owns 43,986 shares of the wireless technology company’s stock worth $7,524,000 after buying an additional 23,262 shares during the period. Verity & Verity LLC increased its holdings in Qualcomm by 5.0% in the 4th quarter. Verity & Verity LLC now owns 69,248 shares of the wireless technology company’s stock valued at $11,845,000 after purchasing an additional 3,279 shares in the last quarter. Jefferies Financial Group Inc. grew its stake in shares of Qualcomm by 237.2% in the fourth quarter. Jefferies Financial Group Inc. now owns 50,993 shares of the wireless technology company’s stock valued at $8,722,000 after buying an additional 35,871 shares in the last quarter. Finally, PBU The Pension Fund of Early Childhood & Youth Educators acquired a new stake in Qualcomm in the fourth quarter valued at approximately $13,446,000. Institutional investors and hedge funds own 74.35% of the company’s stock.

Qualcomm Company Profile

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.