Qualcomm's Trading Volume Drops 31.35% to $822 Million, Yet Stock Climbs to Third Consecutive Day of Gains

On June 25, 2025, Qualcomm's trading volume reached $822 million, marking a 31.35% decrease from the previous day. The stock closed at $155.44, up 0.14% for the day, extending its winning streak to three days with a cumulative gain of 3.05% over the past three days.

Qualcomm's future strategy is centered around diversification, with a particular focus on the Internet of Things (IoT) segment. This segment, currently valued at $1.55 billion, is experiencing a 36% year-over-year growth, driven by AI-enabled devices. This diversification is crucial as the company seeks to reduce its reliance on the smartphone market, which has been facing headwinds.

Qualcomm's strategic foresight in AI and its infrastructure needs positions it as a leader in the semiconductor industry. With a forward P/E ratio of just 13x 2025 earnings, the company offers a compelling entry point for investors. Its aggressive diversification into automotive AI and edge computing, which is growing at 61% year-over-year, further enhances its appeal.

Qualcomm's non-handset revenue streams are growing rapidly, with automotive revenue surging 59% year-over-year in Q2 2025 to $959 million. This growth is driven by its Snapdragon Digital Chassis platforms, which power advanced driver-assistance systems and infotainment in vehicles from global automakers. Meanwhile, IoT revenue jumped 27% year-over-year to $1.58 billion, fueled by AI-enabled smart devices and industrial IoT.

The company's financial health is robust, with a diluted EPS of $9.80 and revenue growth of 15% year-over-year to $10.84 billion in Q2 2025. Qualcomm's balance sheet is strong, with $13.85 billion in cash and a debt-to-equity ratio of 52.7%. This financial stability allows the company to invest in R&D and buybacks while weathering cyclical downturns.

Qualcomm faces near-term risks, including semiconductor cyclicality, in-house chip competition, and trade tensions. However, these risks are tempered by long-term tailwinds such as the AI infrastructure boom, automotive electrification, and margin discipline. The company's operating margin of 26.4% ensures profitability even during downturns.

Investors are advised to consider initiating a position in Qualcomm at current levels, with a stop-loss below $140 and a 3-year horizon. Monitoring automotive/IoT revenue growth and macroeconomic trends will be crucial for long-term success.