As Qualcomm shares hover perilously close to their annual low, a notable divergence is emerging. Major institutional investment firms are sending a strong signal by significantly expanding their holdings, even as certain analysts express caution regarding smartphone demand. This display of professional confidence contrasts with a market environment currently focused on the company’s reliance on Apple and a challenging mobile communications sector.
Solid Operational Performance and Forward Guidance
Operationally, Qualcomm recently delivered robust figures. The company reported earnings per share (EPS) of $3.50, surpassing market expectations of $3.38. Looking ahead to the ongoing second quarter of 2026, management has provided EPS guidance in a range between $2.45 and $2.65.
This fundamental performance is being bolstered by an aggressive capital return policy. An authorized share repurchase program worth $20 billion has the potential to remove up to 14.5% of outstanding shares from the market. This is complemented by a quarterly dividend of $0.89 per share, which translates to a yield of approximately 2.8%.
Major Funds Increase Stakes Despite Analyst Caution
Recent disclosures reveal that several prominent institutions used recent market volatility as a buying opportunity. Approximately 74% of all outstanding Qualcomm shares are now held by institutional investors. Notable increases in positions during the final quarter of 2025 include:
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- Range Financial Group LLC, which boosted its holding by 258.6%
- Zevenbergen Capital Investments LLC, with an increase of 19.3%
- Royal Fund Management LLC, raising its position by 17.4%
These moves occur alongside a more cautious stance from some research analysts. Bernstein recently downgraded the stock from “Outperform” to “Market Perform,” citing concerns over future revenue contributions from Apple and generally sluggish smartphone demand. The current average analyst price target for Qualcomm stands at $163.77.
Automotive Segment Provides Growth Counterweight
To counter pressures in its core business, Qualcomm is actively pursuing diversification. The automotive sector is becoming a significant source of positive momentum, with segment revenue climbing 15% year-over-year in the latest quarter to reach $1.1 billion. The company has secured a future order pipeline valued at $45 billion, positioning itself as an increasingly vital partner to the automotive industry.
Since the start of the year, Qualcomm’s stock has declined roughly 24.4% in value. Currently trading at 111.54 euros, it remains just 1% above its 52-week low. The dual forces of multi-billion dollar share buybacks and double-digit growth in the automotive division now form a fundamental counterbalance to the uncertain outlook in the mobile segment.
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