Qualcomm stock slides as price remains below short- and medium-term averages

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Qualcomm drops 3.38% to $205.52 today

Highlights

Qualcomm raised its non-handset revenue target to $40 billion for 2029, signaling accelerated diversification into data center and AI markets.
Recent partnerships with Meta and Microsoft, plus the $3.92 billion Modular AI acquisition, position Qualcomm for growth in AI and infrastructure sectors.
Technical indicators show short- and medium-term bearish momentum, with QCOM expected to range between $186.63 and $224.41 and downside risk prevailing.

Strategic expansion and AI deals amid persistent selling pressure

Qualcomm raised its non-handset revenue target to $40 billion for fiscal 2029, reflecting a strategic expansion beyond its traditional handset segment and highlighting efforts to increase the company's addressable market. The company also introduced its Dragonfly data center CPU and announced new partnerships with Meta and Microsoft, giving Qualcomm direct access to fast-growing areas in data center infrastructure and AI, according to CNBC. In addition, Qualcomm finalized the acquisition of Modular, an AI software developer, in an all-stock transaction valued at around $3.92 billion, as reported by Blockonomi. Despite these developments, price action has remained under broader selling pressure.

Mixed momentum as price tests resistance and signals diverge

On the technical front, QCOM is trading below the MA-20 at $205.98 and MA-50 at $215.28 on the hourly chart, while remaining above the long-term MA-200 at $167.62 on the daily timeframe. Immediate resistance is defined by the Ichimoku Kijun line at $212.23. The Moving Average Convergence Divergence (MACD) signals a strong sell, with the Average Directional Index (ADX) confirming a bearish momentum bias. The Relative Strength Index (RSI) is neutral to bullish at 50.69, and Stochastic RSI is in overbought territory. Both the Commodity Channel Index (CCI) and the Awesome Oscillator are neutral, while Bull/Bear Power is overbought, pointing to temporary intraday buyer control but with mixed signals across oscillators.

Downside favored as volatility range limits upside breakout odds

Looking ahead, QCOM is expected to trade within a typical volatility band ranging from $186.63 to $224.41 over the coming sessions. The probability of a break to the upside is very low, with downward continuation much more likely under the prevailing conditions. The baseline scenario is for QCOM to trade sideways within this range, with a move above $212.23 potentially triggering renewed upward momentum, while a decisive break below $186.63 could lead to further selling pressure.

Anton Kharitonov, analyst at Traders Union, notes that Qualcomm's latest strategic moves — including expansion in non-handset revenue and high-profile AI partnerships — have yet to translate into technical strength. He sees persistent weakness on the charts, as QCOM trades below key averages with bearish momentum indicators dominant. Kharitonov remains cautious, pointing to a strong likelihood of continued sideways or downward price action unless $212.23 is convincingly reclaimed. "The base case is sideways to lower, and until QCOM breaks above $212.23, any optimism is premature."

Earlier, analysts noted that Qualcomm was stabilizing after a period of significant selling pressure, with expectations for a sideways consolidation as downside risks narrowed. The current combination of continued technical weakness and major strategic initiatives adds complexity to the outlook, making $212.23 a key resistance level to watch for any potential shift from the prevailing range-bound scenario.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.