Qualcomm (Qualcomm (QCOM)) shares are getting hammered Tuesday, down more than 11% as traders take profits from a massive run-up and the broader market turns cautious. The S&P 500 is off about 1%, but the selling in Qualcomm feels more personal—it's a stock-specific profit-taking event after a sharp rally that left the stock technically extended.
The company's fiscal second-quarter update on April 29 was solid: adjusted EPS of $2.65 on revenue of $10.60 billion, both beating consensus estimates of $2.56 and $10.59 billion. Management also highlighted capital returns, including $5.4 billion in buybacks during the first half of fiscal 2026 and a newly announced $20 billion repurchase authorization. That's a lot of cash being thrown at shareholders, but it wasn't enough to keep the stock from falling.
The selling pressure looks more macro-driven than sector-specific at first glance: the Nasdaq is down 1.90%, the Russell 2000 is down 2.43%, and market breadth is slightly negative (advance/decline ratio of 0.8). Communication Services is holding near unchanged (+0.01%, ranked fifth of 11 sectors), so Qualcomm's drop stands out as stock-specific profit-taking after a sharp run. The PHLX Semiconductor Sector, which includes NVIDIA (NVDA), Taiwan Semiconductor (TSM), and Broadcom (AVGO), was down close to 6% on Tuesday, so chip stocks broadly are feeling the heat.
Technical Analysis
From a longer-term trend view, Qualcomm is still extended above its major moving averages — trading 29.2% above its 20-day SMA and 32.8% above its 200-day SMA — leaving less room for error when the tape turns risk-off. The trend picture is mixed: the 20-day SMA is above the 50-day SMA (bullish near-term), but the death cross from February (50-day below the 200-day) is a reminder that the bigger-cycle trend only recently stabilized.
Momentum is the bigger tell right now: RSI is 88.39, which signals the move has been stretched and prone to sharp pullbacks or sideways digestion even if the longer-term uptrend remains intact. Key levels matter more in this setup because extended RSI readings can unwind quickly once buyers step back.
- Key Support: $172 — Nearby level where buyers previously stepped in, sitting close to the 20-day EMA ($172.59) and acting as a practical "line in the sand" if the pullback deepens.
Earnings & Analyst Outlook
Looking further out, the next major catalyst for the stock arrives with the July 29 (estimated) earnings report.
- EPS Estimate: $2.09 (Down from $2.77 year-over-year)
- Revenue Estimate: $9.67 billion (Down from $10.37 billion YoY)
- Valuation: P/E of 25.5x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $174.54. Recent analyst moves include:
- Tigress Financial: Buy (Raises target to $280 on May 8)
- Daiwa Capital: Upgraded to Outperform (Raises target to $225 on May 8)
- JP Morgan: Neutral (Raises target to $160 on April 30)
Price Action
QCOM Stock Price Activity: Qualcomm shares were down 13.97% at $204.35 at the time of publication on Tuesday.
