Qualcomm Gets Crushed: $150 Is the Level to Watch Going Forward

Core Viewpoint - Qualcomm Inc's shares have declined approximately 17% over the past week, erasing gains made in 2025 and returning to 2020 levels, indicating a significant reversal for investors [1][2]. Group 1: Market Context - The decline in Qualcomm's stock is partly attributed to a broader geopolitical backdrop that has led to a selloff in tech stocks, with the S&P 500 experiencing its worst single session since October [2]. - The technical damage to Qualcomm's stock chart is notable, especially given the stock's previous struggle to gain momentum [2][3]. Group 2: Technical Indicators - Qualcomm's relative strength index (RSI) has entered extremely oversold territory, marking its most stretched reading since April of the previous year, which could indicate unsustainable selling pressure [4][5]. - Historical data shows that the last time the stock reached similar oversold conditions, it rallied by as much as 70% in the following months, suggesting potential for recovery [6]. Group 3: Investor Sentiment - Despite the oversold conditions, skepticism remains due to Qualcomm's history of disappointing investors and failing to maintain upward momentum [7]. - The current selloff appears disconnected from the company's fundamentals, as there have been no recent earnings misses or negative developments specific to Qualcomm [8]. Group 4: Analyst Positioning - Analysts from Citigroup, RBC, and Mizuho have rated Qualcomm as Neutral or equivalent, with cautious price targets around $180, indicating that the recent selling may be overdone [9]. Group 5: Future Considerations - For a genuine opportunity to arise, Qualcomm's stock needs to stabilize around the $150 level, with signs of selling exhaustion such as a rising RSI or a bullish MACD crossover [10]. - While caution is advised due to the broken trend, the oversold condition of a fundamentally strong stock warrants attention for potential entry points for long-term investors [11].