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. In the quarter ended March 2025, the company achieved $9.5 billion in revenue from its Qualcomm CDMA Technologies segment, driven by its Snapdragon processors, used by smartphones brands like Xiaomi.
Stock background:
After making a record high in May 2024, the stock lost nearly 50% hurt by concerns over smartphone market worst downturn in years and geopolitical worries affecting demand for chips. In recent weeks, the stock has stabilized after the latest earnings showed record revenue driven by broad-based strength across its core business units. Strategic partnerships to integrate 5G into private networks for industrial automation, diversification into the auto sector with partnerships with major automakers, and the renewed focus on AI and data centers indicate the future doesn’t look as gloomy as the stock’s performance in the past year seems to suggests. In this regard, Qualcomm agreed to acquire Alphawave this week as it expands in the booking AI data center market. Qualcomm jumped over 4% following the announcement, raising the prospect that the acquisition news could be the catalyst for a turnaround in the price.
From a valuation perspective, the stock is trading cheaper relative to the US Semiconductor industry average. In terms of price performance, Qualcomm is trading at a big discount to the US Semiconductor industry and the benchmark Nasdaq Composite Index.
Technical Analysis on Qualcomm Incorporated (NASDAQ: QCOM)
Our proprietary system TradersGPS (TGPS) flashed a warning signal in August after the stock retreated from its record high. The colour of the candles turned Red indicating the stock was in a downtrend, after which the stock fell 30% before making a low in April. While the colour of the candles remains Red indicating the stock’s fortunes may not have turned just yet, technical analysis suggests growing odds that the stock’s worst could be over. As per our system, Blue candles indicate the stock’s trend is up.
On the weekly candlestick charts, following a multi-month decline, the stock found support on an uptrend line from early 2019, roughly coinciding with the 61.8% retracement of the 2019-2024 rise. The stock is now attempting to rise above crucial resistance at the August and the December lows of 150-151. A decisive break above the resistance would confirm that the downward pressure had faded, opening the way initially toward resistance at the February high of 177.
The risk is that the stock fails to rise decisively above 150-151, exposing the downside initially toward the April low of 120, potentially the 2023 low of 101.50.
