About the Company (NASDAQ: QCOM)
Qualcomm Incorporated creates semiconductors, software, and services related to wireless technology. The company’s dominance in 5G technology remains its key source of growth. It owns patents critical to 5G, 4G mobile communications standards.
Stock background:
Qualcomm hit a seven-month high this week, gaining over 40%% since April, led by strong earnings, diversification in automotive and internet of things segments. Announcing the earnings for the quarter ended June 30, Qualcomm’s CEO said its leadership in AI processing, high performance, and low-power computing enables it to become the platform of choice as AI gains momentum. Guidance from the company suggests it is on track to deliver revenue growth of 12% in the fiscal year 2025 compared with fiscal 2024.
The stock has fallen 50% since last year on concerns over the smartphone market’s worst downturn in years and geopolitical worries affecting demand for chips. However, the company’s growth in automotive technology, including tie-ups in the automobile industry, could help offset the slowdown in other sectors of the company. Analysts estimate the diversification strategy could propel revenue growth in the years ahead.
From a valuation perspective, the stock is trading at a 16x price-earnings ratio, according to TradingView, cheaper relative to the US Semiconductor industry average and some of its peers. Qualcomm offers a 2% dividend yield, compared with Broadcom’s 0.7% and Intel’s 0.6%, according to TradingView.
Technical Analysis on Qualcomm Incorporated (NASDAQ: QCOM)
Our proprietary system TradersGPS (TGPS) has been broadly bullish on the weekly chart since June 2025. As per our system, Blue candles indicate the stock’s trend is up; Red candles indicate that the stock’s trend is down. The stock has hit a six-month high, suggesting it could finally be out of the multi-week sideways range.
On the weekly candlestick charts, the recent break above the June high of 164 has confirmed that the multi-month downward pressure has ended. The stock is now headed for a test of 177-182 (the November 2024 and the February 2025 highs). A break above could open the door toward the record high of 230 hit in June 2024.
The risk is that the stock fails to decisively clear resistance at 177-182. A failure to do so would curtail the uptrend, exposing the downside initially toward the resistance turned support at 164. Only a break below the August low of 144 could require a reassessment of the optimistic outlook.
