Qualcomm Shares Rally on AI Momentum, $1.22B Volume Ranks 65th in Market Activity

Qualcomm (QCOM) saw a 2.52% rise on August 22, with a trading volume of $1.22 billion, representing a 58.35% increase from the prior day and ranking 65th in market activity. The move reflects renewed investor interest in semiconductor equities amid evolving AI infrastructure demand and geopolitical dynamics.

The stock’s performance aligns with its strong fundamental profile, including a 26.77% profit margin and a 5.69% dividend growth rate. Analysts note that Qualcomm’s valuation appears undervalued relative to its intrinsic estimate of $192.89 per share, suggesting potential upside despite bearish technical indicators such as the Williams %R overbought signal. The semiconductor sector remains fragmented, with divergent investor sentiment between firms like Qualcomm and Intel, which surged 6.89% on speculation about government stakes and AI infrastructure bets.

Options activity highlights short-term positioning. The QCOM20250829C155 call option, with a 34.07% leverage ratio and high gamma sensitivity, attracted 1.895 million in turnover, while the QCOM20250829C157.5 contract offered a 54.07% leverage ratio with moderate time decay. Both instruments reflect aggressive bullish positioning, with liquidity and gamma profiles favoring continuation of the AI-driven rally.

Backtesting a 3% intraday surge in QCOM revealed mixed outcomes: a 51.18% win rate over three days but a -0.07% total return, underscoring the stock’s susceptibility to short-term volatility. Key technical levels to monitor include the 200-day moving average at $156.16 and Bollinger Band resistance at $164.77. Strategic focus remains on a breakout above $159.16 or a breakdown below $158.83, with call options favored for capitalizing on sector momentum.

A strategy of buying the top 500 stocks by daily trading volume and holding for one day generated a 255% cumulative return between 2022 and the present, despite a -22.3% maximum drawdown. This highlights the profitability of high-volume trading strategies in volatile markets.