San Diego, California-based QUALCOMM Incorporated (QCOM) is a leading global technology company renowned for its wireless and telecommunications innovations. With a market cap of $177.2 billion, Qualcomm plays a crucial role in the tech industry by developing advanced semiconductor solutions and communication technologies that drive mobile, automotive, and IoT markets. 

Companies worth more than $10 billion are generally described as “large-cap stocks,” and QUALCOMM fits well within this category, with its market cap significantly surpassing this benchmark. The chip giant leverages its leadership in wireless technology, extensive patent portfolio, and dual revenue model of chip sales and licensing to maintain a strong competitive edge. 

As a dominant force in mobile chipsets and a pioneer in 5G innovation, QCOM drives connectivity advancements across smartphones, IoT, automotive, and industrial applications. Its global reach and strategic partnerships with leading tech companies further bolster its position in the rapidly evolving semiconductor and telecommunications sectors.

Despite the notable strengths, QCOM shares are trading 30.8% below their 52-week high of $230.63, which they hit on Jun. 18. QCOM has surged marginally over the past three months, significantly underperforming the Dow Jones Industrials Average’s ($DOWI) 10.7% gains during the same time frame.

In the longer term, QCOM is up 10.3% on a YTD basis, and the shares have gained 22.7% over the past 52 weeks. In comparison, the $DOWI has gained 18.5% in 2024 and rallied 23.8% over the past year.

To confirm the recent bearish price trend, QCOM has been trading below its 50-day moving average since mid-November and under its 200-day moving average since early November.

On Nov. 29, QCOM shares climbed more than 2% after Bloomberg reported that new U.S. restrictions on chip technology sales to China were less stringent than initially expected.

On Nov. 20, QCOM shares dropped 6.2% after the company announced plans to diversify beyond the smartphone market by 2030 during its IoT and Automotive Diversification Investor Day. The stock's decline reflected market concerns about short-term revenue impacts, particularly as Apple may stop using Qualcomm chips by 2027. The market appears cautious about the potential challenges and impacts of this shift.

Highlighting the contrast in performance, QCOM's competitor, Broadcom Inc. (AVGO), has significantly outperformed both QCOM and the broader market indexes. AVGO has gained 98.7% over the last 52 weeks and 60.8% in 2024.

Analysts are moderately optimistic about QCOM's prospects. The stock has a consensus rating of "Moderate Buy" from 31 analysts in coverage. The mean price target is $207.92, suggesting a premium of 30.3% to its current levels.