Qualcomm (NASDAQ:QCOM) Trading 6.2% Higher – What’s Next?

Qualcomm Incorporated (NASDAQ:QCOM) shares shot up 6.2% on Thursday . The stock traded as high as $229.42 and last traded at $226.11. 46,682,079 shares changed hands during trading, an increase of 183% from the average daily volume of 16,468,021 shares. The stock had previously closed at $212.97.

Trending Headlines about Qualcomm

Here are the key news stories impacting Qualcomm this week:

• Positive Sentiment: Investor sentiment is being lifted by Qualcomm’s upcoming June 24 Investor Day, where management is expected to highlight its long-term AI, data center, 6G, and industrial AI strategy. Market participants are looking for new revenue targets and evidence that the company can expand beyond handsets. Qualcomm Shares Gain as Investor Day Hopes and AI Data Center Momentum Lift Sentiment
• Positive Sentiment: Qualcomm is also getting a boost from its push into AI data center chips, including reports that it has launched a custom AI data center program with a major hyperscaler and could begin initial shipments later this year. That supports the idea that Qualcomm is building a meaningful new business line in AI infrastructure. Qualcomm (QCOM) Launches New AI Data Center Program With A Major Hyperscaler
• Positive Sentiment: Speculation around a possible $8 billion to $10 billion acquisition of AI chip startup Tenstorrent is reinforcing Qualcomm’s ambitions to accelerate its AI roadmap and compete more directly in the data center market. Investors appear to view the move as a shortcut to faster AI relevance. Qualcomm in Talks to Acquire AI Chip Startup Tenstorrent, Reuters Reports
• Neutral Sentiment: Recent commentary from analysts and market outlets remains mixed, but several pieces argue that Qualcomm is still undervalued if automotive, IoT, and data center revenue continue improving. This helps support the stock’s rerating, though it is not a near-term fundamental catalyst by itself. Qualcomm Goes All-In: The $10B Bet to Crush NVIDIA
• Neutral Sentiment: The upcoming quarterly dividend and recent institutional ownership shifts are supportive for sentiment, but they are not the main drivers of the stock’s move today. Qualcomm to pay dividends next week; Here’s how much 100 QCOM shares will earn
• Negative Sentiment: There is still some caution around Qualcomm’s transition story, including recent analyst splits and ongoing insider selling, which could temper enthusiasm if management does not deliver a strong AI/data center update. Qualcomm Shares Gain as Investor Day Hopes and AI Data Center Momentum Lift Sentiment

Wall Street Analysts Forecast Growth

Several analysts have commented on QCOM shares. Citigroup upped their price objective on Qualcomm from $140.00 to $160.00 and gave the company a “neutral” rating in a research note on Thursday, April 30th. Benchmark lifted their target price on Qualcomm from $200.00 to $225.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Loop Capital raised Qualcomm from a “hold” rating to a “buy” rating and set a $185.00 target price on the stock in a report on Tuesday, February 24th. The Goldman Sachs Group assumed coverage on Qualcomm in a research note on Monday, March 30th. They set a “neutral” rating and a $135.00 price target for the company. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Qualcomm in a report on Friday, March 27th. Fifteen analysts have rated the stock with a Buy rating, sixteen have assigned a Hold rating and three have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Qualcomm currently has a consensus rating of “Hold” and a consensus target price of $188.04.

Qualcomm Stock Performance

The company has a debt-to-equity ratio of 0.54, a current ratio of 2.37 and a quick ratio of 1.61. The stock has a market cap of $238.32 billion, a price-to-earnings ratio of 24.58, a P/E/G ratio of 26.48 and a beta of 1.59. The stock’s 50-day moving average is $189.80 and its 200 day moving average is $165.94.

Qualcomm (NASDAQ:QCOM) last released its earnings results on Wednesday, April 29th. The wireless technology company reported $2.65 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.56 by $0.09. The company had revenue of $10.60 billion for the quarter, compared to analysts’ expectations of $10.59 billion. Qualcomm had a return on equity of 42.11% and a net margin of 22.31%.The firm’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.85 EPS. Qualcomm has set its Q3 2026 guidance at 2.100-2.300 EPS. As a group, analysts predict that Qualcomm Incorporated will post 8 earnings per share for the current fiscal year.

Qualcomm Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 25th. Investors of record on Thursday, June 4th will be paid a $0.92 dividend. This represents a $3.68 dividend on an annualized basis and a dividend yield of 1.6%. This is a boost from Qualcomm’s previous quarterly dividend of $0.89. The ex-dividend date is Thursday, June 4th. Qualcomm’s dividend payout ratio (DPR) is presently 40.00%.

Qualcomm declared that its Board of Directors has authorized a share buyback program on Tuesday, March 17th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the wireless technology company to buy up to 14.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Qualcomm news, CAO Patricia Y. Grech sold 829 shares of the stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $201.77, for a total value of $167,267.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 business’s stock in a transaction 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 sale, the executive vice president owned 30,684 shares in the company, valued at $3,999,352.56. The trade was a 7.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 21,806 shares of company stock worth $3,928,958. 0.05% of the stock is owned by insiders.

Institutional Trading of Qualcomm

Several hedge funds and other institutional investors have recently made changes to their positions in QCOM. Your Advocates Ltd. LLP acquired a new position in Qualcomm during the first quarter worth about $26,000. Richardson Financial Services Inc. boosted its stake in shares of Qualcomm by 90.9% during the 4th quarter. Richardson Financial Services Inc. now owns 168 shares of the wireless technology company’s stock worth $29,000 after acquiring an additional 80 shares in the last quarter. Torren Management LLC purchased a new stake in shares of Qualcomm during the 4th quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd grew 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 worth $29,000 after acquiring an additional 170 shares during the period. Finally, Birchwood Financial Partners Inc. purchased a new position in Qualcomm in the 4th quarter valued at approximately $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.