Buy the Dip in Qualcomm? Technicals and Earnings Point to Upside

Qualcomm Inc. (QCOM) is accelerating growth through strategic partnerships, AI innovation, and market diversification. The company is expanding its footprint across smartphones, automotive, industrial IoT, data centres, and wearable technology. Record earnings and strong segment growth highlight the success of this strategy. Despite global trade risks and rising competition, Qualcomm’s innovation-driven approach positions it for sustained leadership in the tech industry. This article presents the company’s growth drivers, financial performance, technical outlook, and key risks to understand the next move in Qualcomm’s stock price.

Qualcomm’s Technicals Point to Strong Upside Potential

Long-Term Bullish Trend with Strong Historical Growth

The long-term outlook for Qualcomm shows positive price action over the past few decades. The stock price has recorded significant growth in the 21st century. It found a bottom in 2002 at $11.61 and reached a record high in 2024 at $230.63.

After hitting this peak in 2024, the stock corrected lower toward key support levels. The overall price structure remains strongly bullish, with the stock still trading within a long-term upward trend. The significant long-term support for this trend lies near the $70 area, where the stock has historically maintained bullish momentum.

The tariffs has induced strong volatility in Qualcomm’s price. The correction from the 2024 record high found strong support in April 2025 at $122, which corresponds to the 50% Fibonacci retracement of the 21st-century bull run. An additional key support is seen at the 61.8% retracement near $96.

These two levels form the major long-term support zones, from which the stock is likely to turn higher. Moreover, the strong monthly candle in April 2025, with a long lower shadow from the 50% Fibonacci retracement, signals that the stock may be reversing to the upside from these levels.

Weekly Chart Shows Bullish Wedge Formation at Key Support

To further understand the bullish price action in Qualcomm, the weekly chart shows the formation of a broadening wedge pattern above the long-term support area. The 50% retracement level at $122 also aligns with a rising black trendline originating from the 2019 lows.

A strong bullish hammer formed at this trendline near the $122 support, indicating the potential for a bullish reversal. However, if the stock fails to hold the $122 level, the next significant long-term support is likely near the $70 area, which could serve as the bottom of this cycle.

Short-Term Reversal Signals Time to Buy the Dip

In the short term, Qualcomm’s price action shows a reversal from the $122 support, forming an inverted head and shoulders pattern with a neckline near the $162 level. This pattern signals the potential for a bullish reversal. A breakout above $162 would open the way to strong resistance between $177 and $182.

A break above the $177–$182 zone could trigger a strong surge, potentially pushing Qualcomm toward its record highs. Investors may consider buying near the $122 support and adding positions if the price breaks above $162 with volume confirmation.

If the stock fails to hold $122, the next key support lies at $96, followed by the historical pivotal support near $70. These levels represent potential long-term entry points for investors looking for significant growth in the months and years ahead.

Peer Comparison and Relative Strength

The chart below shows Qualcomm’s stock outperforming Texas Instruments Incorporated (TXN) and Micron Technology Inc. (MU) over the past year, while Arm Holdings (ARM) led with exceptional gains. Qualcomm delivered a 31% price increase despite market volatility, supported by strong earnings and growth in automotive and IoT segments.

While Arm trades at stretched valuations, Qualcomm offers a balanced mix of growth and value. Its consistent upward trend since early 2025, combined with bullish technical support near $122, signals strong upside potential. This resilience makes Qualcomm an attractive buy compared to peers with slower growth momentum.

Qualcomm Q3 2025 Earnings with Record IoT and Auto Growth

Qualcomm delivered strong Q3 2025 earnings, with revenue rising to $10.37 billion, surpassing expectations. Moreover, the EPS was also strong at $2.43 and beat expectations.

The QCT segment, which includes mobile, automotive, and IoT chips, drove most of the gains, delivering $8.99 billion in revenue, up 11% from last year. Moreover, the automotive chips hit a record $984 million, up 21% year over year. On the other hand, IoT revenue surged 24%, underscoring the success of Qualcomm’s diversification strategy.

It is observed that the handset chips remained the most significant contributor but grew only 7% year over year, reflecting a maturing smartphone market.

The QTL segment generated $1.32 billion in revenue, up 4% year over year, maintaining high margins despite slower growth. This balance between chip sales and licensing income provides Qualcomm with a more resilient revenue structure.

Moreover, the profitability improved significantly in Q3 2025. The chart below shows that the net income for Qualcomm hit $2.666 billion, which is 25% higher than in Q3 2024. Moreover, the gross profit margin was 55.56%. The new product launches, including the Snapdragon X85 5G modem, helped maintain a technological edge and supported higher margins.

Shareholder returns remained robust, with $3.8 billion distributed through dividends and buybacks. The chart below shows the consistent increase in the dividend during the past decades, which highlights the commitment to shareholders.

The chart below shows the strong free cash flow of $2.581 billion. The management reiterated its goal of returning 100% of free cash flow to shareholders in fiscal 2025. For Q4 2025, Qualcomm expects revenue between $10.3 billion and $11.1 billion and EPS of $2.75 to $2.95. The continued growth in automotive and IoT is expected to offset seasonal handset declines.

Qualcomm Growth Driven by Strategic Partnerships and AI Innovation

Qualcomm is entering a period of strong growth momentum driven by multiple strategic catalysts. The company recently extended its multi-year collaboration with Xiaomi to power premium smartphones with Snapdragon 8-series platforms. Under this agreement, shipment volumes will increase each year, and Xiaomi will be among the first to adopt the next-generation Snapdragon 8-series launching later in 2025. This deepened partnership strengthens Qualcomm’s presence in the high-end Android market in China and globally.

Qualcomm also announced that the Samsung Galaxy Z Fold7 will be powered by the Snapdragon 8 Elite for Galaxy. This custom-designed chip is the most powerful Snapdragon processor to date, delivering a 38% CPU boost, 26% GPU improvement, and 41% NPU performance gain over its predecessor. The integration of Galaxy AI with Snapdragon’s performance upgrades enhances foldable devices’ capabilities, supporting Qualcomm’s push into premium and innovative smartphone segments.

Qualcomm Expands Beyond Smartphones with AI-Driven Industrial IoT Solutions

In industrial IoT, Qualcomm has partnered with Advantech to accelerate AI-driven edge computing. This collaboration integrates Qualcomm’s cutting-edge processors into Advantech’s edge AI platforms, enabling intelligent solutions across industries. By targeting sectors like manufacturing, logistics, and energy, Qualcomm is expanding beyond smartphones into higher-growth enterprise applications. This move diversifies its revenue streams while capitalising on the rapid adoption of AI-powered automation.

The company is also strengthening its position in data centres with the planned $2.4 billion acquisition of Alphawave Semi. Alphawave’s high-speed connectivity and compute solutions complement Qualcomm’s Oryon CPU and Hexagon NPU technologies. This acquisition provides key infrastructure to support AI inferencing workloads, positioning Qualcomm to benefit from surging demand for high-performance, energy-efficient computing in cloud and AI applications.

Entering New Frontiers with AR, Data Centres, and Wearable AI

Finally, Qualcomm unveiled the Snapdragon AR1+ Gen 1 chipset for AI-powered smart glasses. This platform delivers real-time on-device AI, better power efficiency, and a smaller package size, enabling new consumer and enterprise AR experiences. By entering the wearable AI market, Qualcomm is building an ecosystem that connects smartphones, XR devices, and edge AI systems. Together, these catalysts, spanning smartphones, IoT, data centres, and wearables, create a powerful growth narrative for the company.

Market Risks

Qualcomm faces high exposure to geopolitical tensions and trade policies. The US–China relationship remains uncertain, with tariffs and export restrictions potentially affecting both chip sales and licensing revenue. A large share of Qualcomm’s handset business depends on Chinese OEMs, making it sensitive to regulatory shifts and supply chain disruptions.

Moreover, the competition in core and emerging markets is intensifying. Rivals like MediaTek, Samsung, and new automotive and IoT entrants are aggressively targeting Qualcomm’s key segments. Pricing pressures and rapid innovation cycles could erode margins if Qualcomm fails to maintain a clear technological edge.

On the other hand, the macroeconomic factors also pose risks. Slower global smartphone demand and inflation could impact consumer spending and corporate investment in new technologies. The uncertain interest rates and volatile capital markets may further pressure earnings growth and valuation multiples.

Conclusion

Qualcomm is well-positioned for long-term growth with its multi-sector expansion and strong partnerships. The company is driving innovation in premium smartphones, automotive technology, industrial IoT, data centres, and wearable AI. Record earnings in Q3 2025 highlight the strength of its diversification strategy, while robust free cash flow supports shareholder returns.

From a technical perspective, the stock price has hit strong long-term support at the 50% retracement level of $122 and formed bullish price action. This bullish signal at long-term support indicates upside potential. However, any correction within the $96 to $122 range is considered a strong long-term buying opportunity. The stock remains bullish as long as it stays above the long-term pivotal support at $70. Investors may consider buying the stock and adding more positions on further declines.