Qualcomm Inc. (NASDAQ: QCOM) stock is trading higher on Thursday as investors move capital out of NVIDIA Corp. (NASDAQ: NVDA) and into competing artificial intelligence chipmakers.
The move followed Nvidia's Thursday announcement that co-founder Jensen Huang resigned immediately as President, CEO and Board Member after leading the company for 33 years.
Rather than leaving artificial intelligence chip investments, institutional funds reduced concentrated holdings in Nvidia ahead of next week's earnings report and reallocated capital to competitors.
Qualcomm's advance occurs during a muted session for the broader market.
On Thursday, the Technology sector is down 0.21%, and the Nasdaq is down 0.02%, while the S&P 500 has gained 0.02%.
Over longer periods, the Technology sector has declined 11.37% over the past 30 days and 8.45% over the past 90 days.
Technical Analysis
Qualcomm is back in a constructive spot on the longer-term trend map, trading above its 20-day, 50-day, 100-day, and 200-day moving averages, about 4% above the 20-day SMA and roughly 6.1% above the 200-day SMA. That "price above the stack" setup often signals that dips are getting bought, even if the stock isn't in a straight-line uptrend.
Momentum is best framed through RSI, which sits at 54.51, neutral, but tilted slightly positive rather than stretched.
The crossover picture is mixed: the 50-day SMA remains above the 200-day SMA (the golden cross that occurred in September), but the 20-day SMA is still below the 50-day SMA, which can cap near-term follow-through if buyers don't keep pressure on.
From a structure standpoint, the stock's recent swing high was in September, and the recent swing low was in November, so traders are watching whether this rebound can build a higher low and retest overhead supply.
- Key Resistance: $185.50, a nearby pivot area that can act as a "speed bump," with price already close to it
- Key Support: $169, a prior buyer-defense zone that sits closer to the longer-term trend floor
QCOM Price Action: Qualcomm shares were up 1.00% at $178.33 at the time of publication on Thursday, according to market data.
