Qualcomm (NASDAQ:QCOM) Shares Down 1.6% – What’s Next?

Qualcomm Incorporated (NASDAQ:QCOM)’s stock price fell 1.6% on Wednesday . The stock traded as low as $183.37 and last traded at $184.84. Approximately 9,506,704 shares traded hands during mid-day trading, a decline of 39% from the average daily volume of 15,534,435 shares. The stock had previously closed at $187.80.

Key Headlines Impacting Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Amazon AI partnership strengthens the data-center narrative. Qualcomm’s multigenerational collaboration with Amazon to develop customized AI data-center silicon and optical-connectivity solutions is being viewed as a potential entry point into the hyperscaler market. Amazon may also receive warrants to purchase up to $4 billion of Qualcomm stock, aligning the companies’ interests. Why Qualcomm Is Up After New Amazon AI Chip Deal
• Positive Sentiment: Analysts see broader growth opportunities. StoneX reiterated a Buy rating and a $270 price target, citing Qualcomm’s expanding data-center ambitions and growing exposure to hyperscale customers. Investors are also encouraged by progress in automotive chips and the company’s partnership with Cornelis Networks on AI networking and programmable compute infrastructure. Qualcomm Stock Rises as AWS Deal Boosts Data Center Outlook
• Positive Sentiment: Valuation remains a supporting factor. Despite a roughly 30% rally since August, Qualcomm continues to trade at a relatively modest valuation compared with some AI-related semiconductor companies. Optimists argue that successful execution in AI infrastructure and automotive could cause the discount to narrow. Qualcomm’s Discount Could Vanish If Its AI Bet Pays Off

Analyst Ratings Changes

Several analysts recently issued reports on the stock. DZ Bank upgraded shares of Qualcomm from a “hold” rating to a “buy” rating and set a $265.00 target price for the company in a research report on Friday, June 26th. Evercore set a $159.00 price target on shares of Qualcomm in a research note on Thursday, July 30th. HSBC reissued a “hold” rating on shares of Qualcomm in a research report on Wednesday, July 15th. Sanford C. Bernstein reaffirmed a “market perform” rating on shares of Qualcomm in a report on Wednesday, September 9th. Finally, Citigroup cut their price target on Qualcomm from $198.00 to $175.00 and set a “neutral” rating for the company in a report on Wednesday, July 29th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twenty-two have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $204.10.

Qualcomm Stock Down 1.6%

The stock has a market capitalization of $194.12 billion, a P/E ratio of 21.39, a P/E/G ratio of 3.75 and a beta of 1.68. The company’s 50-day moving average price is $168.42 and its 200 day moving average price is $171.58. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.28 and a current ratio of 2.02.

Qualcomm (NASDAQ:QCOM) last issued its earnings results on Wednesday, July 29th. The wireless technology company reported $2.21 earnings per share for the quarter, missing the consensus estimate 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 return on equity of 38.36% and a net margin of 21.01%.The company’s quarterly revenue was down 4.0% on a year-over-year basis. 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 expect that Qualcomm Incorporated will post 7.74 earnings per share for the current year.

Qualcomm Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd will be issued a dividend of $0.92 per share. This represents a $3.68 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Thursday, September 3rd. Qualcomm’s dividend payout ratio (DPR) is 42.59%.

Insider Activity

In other news, CAO Patricia Grech sold 208 shares of the business’s stock in a transaction on Monday, August 31st. The shares were sold at an average price of $170.00, for a total value of $35,360.00. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Akash Palkhiwala sold 2,500 shares of the firm’s stock in a transaction 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 transaction, the executive vice president directly owned 18,184 shares of the company’s stock, valued at $3,324,944.40. The trade was a 12.09% 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 have sold a total of 11,533 shares of company stock worth $1,924,969 over the last quarter. Insiders own 0.05% of the company’s stock.

Institutional Investors Weigh In On Qualcomm

Several large investors have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in shares of Qualcomm during the 2nd quarter worth approximately $17,583,115,000. Geode Capital Management LLC increased its position in 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 purchasing an additional 3,221,924 shares during the last quarter. Van ECK Associates Corp raised its stake in Qualcomm by 22.7% during the second quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company’s stock valued at $3,178,872,000 after purchasing an additional 3,179,720 shares in the last quarter. Norges Bank purchased a new stake in Qualcomm during the fourth quarter valued at $2,591,056,000. Finally, Invesco Ltd. lifted its position 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 purchasing an additional 2,771,490 shares during the last quarter. 74.35% of the stock is owned by institutional investors.

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.