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QUALCOMM Incorporated (QCOM), headquartered in San Diego, California, is a leading global technology company renowned for its wireless and telecommunications innovations. With a market cap of $182.18 billion, Qualcomm plays a crucial role in the tech industry by developing advanced semiconductor solutions and communication technologies that drive mobile, automotive, and IoT markets.
Companies worth more than $10 billion are generally described as “large-cap stocks,” and QUALCOMM fits well within this category, with its market cap significantly surpassing this benchmark. The technology leader sets itself apart by pioneering advancements in wireless communications and developing cutting-edge semiconductor solutions that power mobile devices, automotive systems, and IoT applications worldwide.
QCOM shares are trading 29.2% below their 52-week high of $230.63, which they hit on Jun. 18. QCOM has declined 20.7% over the past three months, significantly underperforming the broader Nasdaq Composite ($NASX), which has gained 1.8% over the same time frame.
In the longer term, QCOM is up 12.9% on a YTD basis, and the shares have gained 41.5% over the past 52 weeks. In comparison, the Nasdaq has gained 14.2% in 2024 and rallied 22.1% over the past year.
To confirm the recent bearish price trend, QCOM has been trading below its 50-day moving average recently. However, it's trading above the 200-day moving average since early October 2023.
Qualcomm's strong long-term performance has been driven by its strategic shift beyond smartphones, expanding into more profitable sectors like automotive and Internet of Things (IoT) solutions while maintaining significant investment in Research and Development. On Jul. 31, the stock surged over 8% amid a broader chip rally and strong expectations for Q3 earnings.
Highlighting the contrast in performance, QCOM's competitor, Broadcom Inc. (AVGO), has significantly outperformed both QCOM and the broader market indexes. AVGO has gained 75.1% over the last 52 weeks.
Analysts are moderately optimistic about QCOM's prospects, given the strong price performance. The stock has a consensus rating of "Moderate Buy" from 29 analysts in coverage. The mean price target is $213.59, suggesting a premium of 30.8% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
