Shares of Qualcomm (NASDAQ:QCOM) closed at $160 on Tuesday night, once again hovering above a key long-term support level of around $150. This area has acted as a technical launchpad for the stock several times since last summer, and it looks like it may do so again. Every time shares have tested this level over the past year, they’ve bounced higher.
This kind of repeated support, particularly when it holds firm across volatile markets, tends to attract institutional interest. It’s a sign that sellers have exhausted themselves, and buyers are ready to enter. With technical momentum shifting and a wave of bullish sentiment building, Qualcomm is beginning to look like it’s coiling tightly, ready to break out.
Qualcomm Fundamentals Are Quietly Impressive
Qualcomm may not make as many headlines as NVIDIA (NASDAQ:NVDA) or Advanced Micro Devices (NASDAQ:AMD), but its financial performance has been consistently strong. For several quarters now, the company has delivered solid earnings results that have exceeded expectations on both revenue and EPS.
Qualcomm has made a deliberate push to diversify away from smartphones, investing heavily in automotive chips, edge computing, and AI-driven processors. These segments are not just growing; they are helping to stabilize earnings, even as mobile demand softens.
Its automotive division, in particular, is gaining traction. Qualcomm’s vehicle chip revenue is expected to grow steadily in the years ahead, positioning it as one of the leading suppliers in the space. Meanwhile, its AI-focused chips designed for inference and edge devices are well-timed to capitalize on broader consumer and industrial device adoption trends.
Qualcomm Valuation Adds Even More Fuel
You do not often find a semiconductor company with consistent performance, long-term growth potential, and a price-to-earnings ratio of just 17. But that’s where Qualcomm sits today.
Compare that to NVIDIA’s PE ratio of 41 or AMD’s 114, and it becomes clear that Qualcomm offers rare value in a sector where sky-high multiples are the norm. While NVIDIA and AMD certainly command premium valuations due to their dominance in GPUs and AI infrastructure, Qualcomm’s lower multiple, paired with strong fundamentals, makes it a standout for value-conscious investors.
At current levels, Qualcomm looks deeply undervalued, and this valuation gap alone could act as a catalyst for rotation back into the stock as broader tech sentiment recovers.
Analysts Are Starting to Speak Up for Qualcomm
Also of note is the fact that Wall Street hasn’t missed the bullish setup. Benchmark reiterated its Buy rating last month, along with a $240 price target, which, from Tuesday night’s close of $160, implies an upside of 50%.
Analysts across the board have pointed to Qualcomm’s resilient business model and expanding end-market exposure as key reasons to remain bullish. There’s a growing recognition that Qualcomm’s diversification efforts are beginning to pay off and that the market may have been too quick to discount its upside. With attention still focused on the mega-cap names in the chip space, a breakout from Qualcomm could turn some heads.
Qualcomm Technicals Align With the Bullish Case
The technical backdrop is also turning increasingly supportive. Qualcomm’s RSI has been rising from previously oversold levels and now sits comfortably in an uptrend. More significantly, the MACD has just completed its first bullish crossover in months. This is often one of the most reliable technical signals for a trend reversal, especially when confirmed by strong support holding.
The $150 level has now been tested multiple times, and each test has been met with buying pressure. Combined with positive MACD momentum and improving RSI, this creates an environment where a breakout above recent highs becomes a very real possibility.
Getting Involved With Qualcomm Stock
Qualcomm may not have the AI buzz of some of its peers, but its case for a breakout is rooted in solid, verifiable strength. The fundamentals are strong, the valuation is attractive, and the technical setup is increasingly hard to ignore.
For investors who want exposure to the chip sector without paying nosebleed multiples, this may be one of the better opportunities in the market right now. If the $150 level continues to hold, and all signs suggest it will, Qualcomm could well be gearing up for its next leg higher.