Qualcomm (QCOM) surprised investors by dropping sharply after its fiscal second-quarter report, even though it beat analyst expectations on revenue and profit. 

QCOM stock is also down about 7% in the year-to-date, underperforming the S&P 500 Index ($SPX), which has only dropped 4.6%. This has left many on Wall Street scratching their heads, especially since Qualcomm’s automotive and IoT businesses showed strong double-digit growth. Plus, analysts widely agree that the semiconductor industry is poisted for more rapid growth. 

So, how should investors view the Q2 stumble? Is this dip a buying opportunity or a sign to remain cautious? Let’s find out.

Qualcomm’s Latest Financial Results

Qualcomm (QCOM) makes wireless tech that powers our phones, cars, and other connected devices. The company has been good to its investors, raising its payments for 23 consecutive years. It pays out $3.56 annually, for a 2.5% yield. 

The numbers were pretty strong when Qualcomm shared its latest results on April 30, 2025. Adjusted revenue was up 15% compared to last year, reaching $10.84 billion. This growth came from strong sales of its Snapdragon chips. Adjusted earnings per share went up 17% to $2.85, better than what analysts expected.

During Q2, Qualcomm returned $2.7 billion to shareholders, with $938 million paid as dividends and $1.7 billion used to buy back shares. This shows the company is committed to rewarding investors even as it invests in future growth.

At a segment level, Qualcomm’s QCT business brought in $9.5 billion, growing 18%, while QTL added another $1.3 billion, up just slightly year-over-year.

QCOM’s Strategic Expansion

In April 2025, Qualcomm announced that it was buying buying MovianAI, which used to be the generative AI division of VinAI, a well-known Vietnamese tech company. VinAI is respected for its work in areas like machine learning, computer vision, and natural language processing. 

With this deal, Qualcomm is bringing together VinAI’s advanced AI research with its own long history of research and development. The goal is to speed up new breakthroughs for things like smartphones, PCs, and smart vehicles. Jilei Hou, Qualcomm’s senior vice president of engineering, said this move shows how serious the company is about putting resources into AI and staying ahead in the field.

Just before that, Qualcomm also announced it was buying Edge Impulse, a platform that helps developers build and launch AI models. Qualcomm wants to make it easier for developers to use its Dragonwing processors.

Qualcomm is also working with Amazon (AMZN) to make in-car tech smarter. At CES 2025, it announced a partnership to combine the Snapdragon Digital Cockpit Platform with Amazon’s Alexa Custom Assistant and AWS cloud. This should help carmakers create better driver-assistance and entertainment systems that use AI for things like voice commands and maintenance alerts. This puts Qualcomm in direct competition with companies like Nvidia (NVDA) and Mobileye (MBLY).

Analyst Perspectives on Qualcomm’s Future

For its fiscal third quarter, the company expects to bring in between $9.9 billion and $10.7 billion in revenue, with adjusted earnings per share likely to fall between $2.60 and $2.80. These numbers show that management still believes there’s strong demand for Snapdragon chips, even as the tech sector faces some big-picture challenges.

Most analysts agree. 31 analysts who cover the stock currently rate it a consensus “Moderate Buy,” and the average price target is $184.12. This implies nearly 30% upside potential from current prices. 

The Bottom Line

So, should you buy the dip in Qualcomm? With strong fundamentals, a solid dividend, and Wall Street projecting 30% upside, the odds look good for patient investors. The company’s aggressive push into AI and automotive tech is likely to pay off, and the current pullback seems more like a temporary blip than a lasting setback. All things considered, shares are more likely to rebound than not, making this dip a smart entry point for those eyeing long-term growth.