Qualcomm (NASDAQ:QCOM) Shares Down 8% – Here’s What Happened

Qualcomm Incorporated (NASDAQ:QCOM) shares traded down 8% during trading on Tuesday . The company traded as low as $198.44 and last traded at $204.13. 23,629,508 shares changed hands during mid-day trading, an increase of 43% from the average session volume of 16,523,873 shares. The stock had previously closed at $221.90.

Key Qualcomm News

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Qualcomm used its Investor Day to sharply raise long-term targets, boosting confidence that it can become a larger player in AI infrastructure and other non-handset markets. It lifted its fiscal 2029 non-handset revenue target to $40 billion and set a new goal of more than $15 billion in data center revenue by fiscal 2029. Article Title
• Positive Sentiment: The company unveiled a multi-generation data center CPU roadmap and announced a strategic agreement with Meta, giving investors a clearer path for Qualcomm’s entry into AI servers and cloud computing. Its first Dragonfly C1000 CPU is expected to enter production in the second half of 2028. Article Title
• Positive Sentiment: Qualcomm also expanded its Hugging Face partnership to speed open, developer-driven AI deployment from devices to the cloud, strengthening its software ecosystem around Snapdragon and data center platforms. Article Title
• Positive Sentiment: Qualcomm agreed to acquire AI software firm Modular for about $3.9 billion, a move meant to strengthen its software stack and improve competitiveness in enterprise AI and data center workloads. Article Title
• Positive Sentiment: Several analysts turned more constructive after the update, including Rosenblatt raising its price target to $265, which added to the bullish momentum around the stock. Article Title
• Neutral Sentiment: There were also reports that Qualcomm is exploring a custom chip-design services deal with ByteDance, which could support diversification but is still only a potential opportunity. Article Title
• Negative Sentiment: Some analysts remain skeptical, arguing Qualcomm is a late entrant in a crowded AI chip market, and TD Cowen kept a $200 price target even while reiterating a buy rating. Article Title

Analyst Ratings Changes

QCOM has been the subject of several recent analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Qualcomm in a research note on Friday, March 27th. BNP Paribas Exane cut Qualcomm to a “neutral” rating in a report on Wednesday, April 29th. Lake Street Capital downgraded Qualcomm to a “hold” rating in a research report on Thursday. Tigress Financial boosted their price objective on shares of Qualcomm from $270.00 to $280.00 and gave the company a “buy” rating in a report on Friday, May 8th. Finally, Summit Insights raised shares of Qualcomm from a “hold” rating to a “buy” rating in a research report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twenty-one have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $211.72.

Qualcomm Stock Performance

The firm’s 50 day moving average is $198.52 and its two-hundred day moving average is $167.48. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.61 and a current ratio of 2.37. The stock has a market capitalization of $216.84 billion, a PE ratio of 22.38, a P/E/G ratio of 25.36 and a beta of 1.59.

Qualcomm (NASDAQ:QCOM) last announced its quarterly earnings data on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.56 by $0.09. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The business had revenue of $10.60 billion for the quarter, compared to analysts’ expectations of $10.59 billion. During the same period last year, the firm earned $2.85 earnings per share. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, research analysts predict that Qualcomm Incorporated will post 7.97 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 dividend of $0.92 per share. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. This represents a $3.68 annualized dividend and a yield of 1.8%. Qualcomm’s dividend payout ratio (DPR) is presently 40.00%.

Qualcomm declared that its board has approved a stock repurchase program on Tuesday, March 17th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the wireless technology company to reacquire up to 14.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, EVP Akash J. Palkhiwala sold 2,500 shares of Qualcomm stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $197.35, for a total transaction of $493,375.00. Following the completion of the sale, the executive vice president directly owned 25,684 shares of the company’s stock, valued at approximately $5,068,737.40. The trade was a 8.87% decrease in their position. The transaction was disclosed in a document filed 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 the business’s stock in a transaction on Monday, May 4th. The stock was sold at an average price of $177.82, for a total transaction of $569,024.00. Following the transaction, the executive vice president 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 position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 21,806 shares of company stock valued at $3,928,958 over the last quarter. Company insiders own 0.05% of the company’s stock.

Institutional Trading of Qualcomm

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP acquired a new stake in Qualcomm during the 1st quarter worth $26,000. Richardson Financial Services Inc. increased its position in shares of Qualcomm by 90.9% during the fourth quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock worth $29,000 after purchasing an additional 80 shares in the last quarter. Torren Management LLC acquired a new stake in shares of Qualcomm during the fourth quarter worth about $29,000. Caitong International Asset Management Co. Ltd lifted its holdings in shares of Qualcomm by 17,000.0% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 171 shares of the wireless technology company’s stock valued at $29,000 after purchasing an additional 170 shares during the last quarter. Finally, Birchwood Financial Partners Inc. purchased a new stake in shares of Qualcomm in the 4th quarter valued at about $31,000. Institutional investors and hedge funds own 74.35% of the company’s stock.

Qualcomm Company Profile

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.