Qualcomm (NASDAQ:QCOM) Stock Price Down 7.1% – Here’s Why

Qualcomm Incorporated (NASDAQ:QCOM) dropped 7.1% during mid-day trading on Wednesday . The stock traded as low as $230.62 and last traded at $231.1850. Approximately 5,046,966 shares were traded during trading, a decline of 67% from the average daily volume of 15,523,772 shares. The stock had previously closed at $248.82.

Qualcomm News Summary

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm reportedly secured a custom ASIC order from ByteDance for AI data center workloads, boosting optimism that the company is becoming a larger player in AI infrastructure. Reuters: Qualcomm strikes AI chip deal with TikTok owner ByteDance
• Positive Sentiment: The ByteDance deal reinforces Qualcomm’s expansion beyond mobile chips, complementing its growing automotive business and supporting the case for a valuation re-rating. MarketBeat: Qualcomm’s TikTok AI Chip Deal Rewrites the Rules
• Positive Sentiment: Recent strength in semiconductor names and broader AI buying has also helped lift Qualcomm shares, adding momentum to the stock’s rally. Yahoo Finance: Why Qualcomm (QCOM) Stock Is Up Today
• Neutral Sentiment: Investors are also watching upcoming commentary around Qualcomm’s longer-term AI roadmap and its Investor Day, which could provide more detail on the size and durability of the new growth opportunity.
• Negative Sentiment: Some of the recent rally may be vulnerable if geopolitical or export-control issues interfere with shipments tied to ByteDance’s AI infrastructure buildout.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Rosenblatt Securities restated a “buy” rating and set a $190.00 target price on shares of Qualcomm in a research report on Thursday, April 30th. Seaport Research Partners restated a “sell” rating and set a $100.00 target price on shares of Qualcomm in a research report on Monday, March 16th. Citigroup boosted their target price on shares of Qualcomm from $140.00 to $160.00 and gave the company a “neutral” rating in a research report on Thursday, April 30th. Barclays boosted their target price on shares of Qualcomm from $130.00 to $150.00 and gave the company an “underweight” rating in a research report on Thursday, April 30th. Finally, Daiwa Securities Group upgraded shares of Qualcomm from a “neutral” rating to an “outperform” rating and set a $225.00 target price for the company in a research report on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Qualcomm currently has a consensus rating of “Hold” and a consensus price target of $181.79.

Qualcomm Trading Down 8.7%

The firm has a market capitalization of $239.55 billion, a P/E ratio of 24.70, a price-to-earnings-growth ratio of 29.50 and a beta of 1.49. The stock’s 50-day simple moving average is $159.34 and its two-hundred day simple moving average is $159.68. The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61.

Qualcomm (NASDAQ:QCOM) last posted its quarterly earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share for the quarter, topping analysts’ consensus estimates of $2.56 by $0.09. The business had revenue of $10.60 billion during the quarter, compared to analyst estimates of $10.59 billion. Qualcomm had a net margin of 22.31% and a return on equity of 42.11%. The company’s revenue was down 3.5% on a year-over-year basis. During the same period in the prior year, the business posted $2.85 earnings per share. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. Equities research analysts expect that Qualcomm Incorporated will post 7.99 EPS 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 given a $0.92 dividend. The ex-dividend date is Thursday, June 4th. This is an increase from Qualcomm’s previous quarterly dividend of $0.89. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.6%. Qualcomm’s dividend payout ratio (DPR) is currently 38.70%.

Qualcomm declared that its board has authorized a share buyback program 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 stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other Qualcomm news, CEO Cristiano R. Amon sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $180.00, for a total value of $1,800,000.00. Following the completion of the transaction, the chief executive officer directly owned 197,568 shares in the company, valued at $35,562,240. This represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 that occurred on 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 transaction, the executive vice president owned 30,684 shares of the company’s stock, valued at approximately $3,999,352.56. The trade was a 7.53% 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. In the last three months, insiders have sold 19,306 shares of company stock valued at $3,435,583. Company insiders own 0.05% of the company’s stock.

Hedge Funds Weigh In On Qualcomm

Hedge funds have recently modified their holdings of the stock. Cloud Capital Management LLC purchased a new position in shares of Qualcomm in the third quarter worth $27,000. Richardson Financial Services Inc. lifted its holdings in shares of Qualcomm by 90.9% in the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock worth $29,000 after buying an additional 80 shares in the last quarter. Torren Management LLC purchased a new position in shares of Qualcomm in the fourth quarter worth $29,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Qualcomm by 17,000.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock worth $29,000 after buying an additional 170 shares in the last quarter. Finally, Birchwood Financial Partners Inc. purchased a new position in shares of Qualcomm in the fourth quarter worth $31,000. Hedge funds and other institutional investors 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.