Qualcomm shares jump as stock buying pressure builds

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Qualcomm surges 3.79% today

Highlights

Qualcomm rallies on robust Q2 earnings, a $20 billion buyback, and an expanded AI chip supply deal with ByteDance.
The company advances in new growth areas with Snapdragon C for Windows laptops and record automotive revenue, but faces future modem chip competition from Apple.
Technicals show strong bullish momentum and overbought conditions, with an expected trading range of $249.28 to $258.88 and high upside probability in the near term.

Earnings growth and chip deals fuel investor optimism

Qualcomm's recent surge is driven by strong second quarter earnings and an expanded AI chip supply agreement with ByteDance, marking a significant step in the data center market. The company also announced a new $20 billion share buyback program, supporting per-share valuation, and continues to return capital to shareholders through dividends and repurchases. Additional positive factors include the launch of the Snapdragon C Platform for Windows laptops and record automotive revenue, while risks such as competition from Apple’s in-house modem chips remain on the horizon.

Anton Kharitonov, expert at Traders Union, views Qualcomm’s recent rally with caution despite strong technicals and headline earnings. He notes stretched conditions, including an overbought RSI and excessive bullish momentum. Kharitonov remains skeptical of sustainability given the risk from Apple’s modem development and the stock’s distance above long-term averages. Potential for a sharp pullback is elevated if momentum stalls or negative news emerges. He warns, "This advance leaves QCOM vulnerable — I prefer to wait for a retracement toward the 50-day average before considering upside again."

Viktoras Karapetjanc, expert at Traders Union, sees impressive strength in Qualcomm, fueled by robust earnings and a major AI chip partnership. He highlights the positive impact of the $20 billion buyback and expanding automotive revenues on future valuations. Karapetjanc notes the bullish technical momentum and considers risks manageable in light of the company’s capital return strategy. He concludes confidently, "The bullish structure remains intact — I expect further growth as institutional interest and product launches drive demand."

Parshwa Turakhiya, analyst, observes short-term optimism in QCOM with momentum reinforced by recent news and technical breakouts. He sees the $249.28 to $258.88 range as a key battleground for traders seeking volatility-driven setups. Turakhiya highlights overbought signals but notes that momentum may attract more speculative flows in the near term. He explains, "Short-term traders could benefit from quick swings within this range, but I’d trail stops closely given the stretched readings on technicals."

Overbought signals emerge as bullish momentum tests resistance

The nearest dynamic support is the Ichimoku Kijun at $195.03, with the 50-day average as the closest underlying dynamic reference below price; resistance aligns with round levels above the daily high. Momentum remains firmly positive as the MACD and Average Directional Index (ADX) indicate strong upward pressure. Overbought signals are present from the Relative Strength Index (RSI at 68.26), Stochastic RSI, and Commodity Channel Index (CCI), highlighting stretched conditions. Bull/Bear Power (BBP) shows buyers firmly dominating intraday momentum, though it also signals overbought status. The Awesome Oscillator is aligned with the bullish trend.

Earlier, analysts noted that Qualcomm’s strong momentum and major AI supply agreements were underpinning a bullish outlook for the stock. With robust earnings, renewed buybacks, and new product launches now propelling further gains, traders should closely watch for a decisive break above $258.88 as the primary trigger for continued upside.

Source of Data: QCOM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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