Can Qualcomm stock extend gains after BMW supply agreement?

Traders Union
All News
Stocks
Qualcomm jumps 3.18% on automotive growth

Highlights

Qualcomm secured a long-term chip supply deal with BMW, ensuring recurring revenue from a significant automotive partner.
Automotive revenue rose 61% year-over-year and IoT grew 9%, counterbalancing a 20% decline in Handsets and highlighting successful diversification.
Shares of Qualcomm are consolidating within a $151.96 to $170.38 range as bullish momentum persists despite overbought intraday signals.

Automotive revenue surge offsets handset weakness as new BMW deal boosts outlook

Qualcomm expanded its automotive segment capabilities by entering a long-term agreement on July 29 to supply chips for BMW's next-generation digital cockpit and advanced driver-assistance systems, according to Insidermonkey. This deal secures recurring demand from a major automotive client and amplifies visibility into Qualcomm's high-growth automotive revenue stream. Recent company data also show a 61% year-over-year surge in automotive revenue and 9% growth in IoT, helping balance a 20% decline in the Handsets segment and underscoring Qualcomm's strategic diversification.

Divergent technical signals as buyers dominate despite neutral oscillators

QCOM is trading above its MA-20 at $157.54 and MA-50 at $155.92 on the hourly chart, while remaining below the MA-200 at $168.91. The Ichimoku Kijun sits at $153.19 and serves as immediate support. MACD signals strong buying momentum, though ADX is neutral. RSI stands at 47.19, indicating a sell bias, and Stochastic RSI is in oversold territory. Both CCI and Awesome Oscillator are neutral, while Bull/Bear Power highlights overbought intraday conditions with buyers currently dominant. Divergence is evident as some oscillators suggest caution, whereas price action and momentum metrics continue to signal bullishness.

Range-bound consolidation likely as breakout risk hinges on sustained momentum

In the short term, QCOM is expected to consolidate within the $151.96–$170.38 range, reflecting typical volatility. There is a 60% probability of an upward breakout toward the upper bound if buying momentum persists, while a move below immediate support at $153.19 could trigger further downside risk. The baseline scenario involves continued range-bound trading as the market digests recent gains and sector rotation dynamics.

Viktoras Karapetjanc, Traders Union expert, believes Qualcomm’s fundamentals are showing notable resilience. He sees strong growth in automotive and IoT segments offsetting handset weakness. The recent BMW chip deal boosts visibility and supports a constructive outlook. Technicals confirm near-term buying strength despite mixed oscillator signals. "With demand from BMW and a surging automotive business, I see Qualcomm well positioned for further upside if momentum holds above immediate support."

Previously it was reported that analysts remained cautious on Qualcomm as technical factors continued to limit upside potential despite recognition for its AI leadership. The latest expansion in the automotive segment and current technical positioning introduce a new growth catalyst, with traders now watching for consolidation within the $151.96–$170.38 range as the market adjusts to evolving sector dynamics.

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.