Qualcomm Surges 3.58% on Earnings Beat and Sector Rally: Is This the Start of a New Bull Run?

Summary
• Qualcomm (QCOM) rockets 3.58% to $153.27, hitting an intraday high of $153.40
• Earnings beat expectations with $2.77 EPS, outperforming the $2.71 consensus
• Semiconductor sector rallies as Apple (AAPL) gains 1.06%, driven by AI demand and Trump’s tariff policies

Qualcomm’s sharp intraday rally has captured market attention, driven by a combination of robust earnings and sector-wide optimism. The stock’s 3.58% surge to $153.27 reflects strong demand amid a broader semiconductor sector rebound. With AI-driven demand and regulatory tailwinds, investors are weighing whether this momentum is sustainable.

Earnings Beat and Sector Tailwinds Fuel QCOM's Rally
Qualcomm’s 3.58% intraday surge was catalyzed by a $2.77 earnings-per-share (EPS) report, exceeding the $2.71 consensus. The semiconductor giant’s revenue of $10.37 billion, up 10.4% year-over-year, underscored its resilience in a competitive landscape. Meanwhile, sector-wide optimism from AI-driven demand and Trump’s proposed 100% chip tariffs (with exemptions for U.S. manufacturers) amplified buying pressure. QCOM’s strategic position in 5G and AI infrastructure further justified the rally.

Semiconductor Sector Rally Fuels QCOM Gains as AAPL Leads Tech Charge
The semiconductor sector surged alongside QCOM, with Apple (AAPL) leading the charge with a 1.06% intraday gain. AI demand and Trump’s tariff policies have created a favorable backdrop for chipmakers, particularly those with U.S. manufacturing commitments. QCOM’s 3.58% rise outpaced the sector’s average, reflecting its strong earnings and leadership in 5G and AI technologies.

Leveraged Bets on QCOM’s Momentum: ETFs and Options to Watch
• 200-day average: $156.69 (above current price)
• RSI: 32.28 (oversold)
• MACD: -2.53 (bearish), Signal Line: -1.46 (bearish)
• Bollinger Bands: Upper $165.09, Middle $153.42, Lower $141.76

QCOM’s technicals suggest a short-term rebound after hitting oversold levels. The stock is testing its 200-day moving average ($156.69) and upper Bollinger Band ($165.09) as key resistance. The Direxion Daily QCOM Bull 2X ETF (QCMU) offers 2x leverage for aggressive bulls, while options provide tailored exposure.

Top Option 1: QCOM20250815C150
• Code: QCOM20250815C150
• Type: Call
• Strike: $150
• Expiry: 2025-08-15
• IV: 28.13% (moderate)
• LVR: 42.47% (high)
• Delta: 0.7476 (moderate)
• Theta: -0.6877 (high decay)
• Gamma: 0.0709 (high sensitivity)
• Turnover: 105,915 (liquid)
• IV: Implied volatility suggests moderate risk/reward
• LVR: High leverage amplifies gains if QCOM breaks $150
• Delta: Moderate sensitivity to price moves
• Theta: High decay favors quick directional bets
• Gamma: High sensitivity to price swings
• Turnover: High liquidity ensures easy entry/exit

This call option offers a high leverage ratio (42.47%) and moderate delta (0.7476), ideal for a bullish breakout. A 5% upside to $160.47 would yield a payoff of $10.47 per share, with high gamma amplifying gains if QCOM surges past $150.

Top Option 2: QCOM20250815C152.5
• Code: QCOM20250815C152.5
• Type: Call
• Strike: $152.50
• Expiry: 2025-08-15
• IV: 26.14% (moderate)
• LVR: 81.32% (very high)
• Delta: 0.5446 (moderate)
• Theta: -0.5852 (high decay)
• Gamma: 0.0948 (very high)
• Turnover: 1,060,016 (extremely liquid)
• IV: Moderate volatility aligns with sector momentum
• LVR: Extreme leverage for aggressive bets
• Delta: Moderate sensitivity to price moves
• Theta: High decay favors rapid directional moves
• Gamma: Very high sensitivity to price swings
• Turnover: Extremely liquid for large positions

This contract offers the highest leverage ratio (81.32%) and very high gamma (0.0948), making it ideal for a sharp breakout. A 5% upside to $160.47 would yield a $7.97 payoff, with high gamma amplifying gains if QCOM surges past $152.50.

Aggressive bulls should consider QCOM20250815C152.5 into a break above $152.50, while QCMU offers 2x leverage for a broader semiconductor play.

Backtest Qualcomm Stock Performance
The backtest of Qualcomm (QCOM) performance after an intraday surge of 4% shows mixed results. While the 3-day win rate is 50.56%, the 10-day win rate is slightly lower at 49.12%, and the 30-day win rate is 54.24%, indicating a higher probability of positive returns in the short term. However, the maximum return during the backtest period was only 1.93%, which suggests that while QCOM has a good chance of positive returns after a 4% surge, the overall returns may be modest.

Act Now: QCOM’s Earnings and Sector Tailwinds Signal Strong Near-Term Potential
Qualcomm’s 3.58% rally is underpinned by strong earnings and a favorable semiconductor sector backdrop. With AI demand and Trump’s tariff policies creating tailwinds, the stock’s test of the $156.69 200-day moving average and $165.09 Bollinger Band will be critical. Investors should monitor QCOM’s ability to hold above $150, with the Direxion Daily QCOM Bull 2X ETF (QCMU) and options like QCOM20250815C152.5 offering leveraged exposure. Meanwhile, Apple (AAPL)’s 1.06% gain as the sector leader reinforces the sector’s strength. Buy QCMU or QCOM20250815C152.5 if $152.50 breaks, or short QCOM20250815P160 if $150 fails to hold.