Qualcomm (NASDAQ: QCOM) is facing challenges in 2026, with its stock down 25% year-to-date as of March 23 due to a memory shortage affecting smartphone component sales and potential loss of its partnership with Apple. In response, Qualcomm announced a $20 billion share buyback and increased its quarterly dividend from $0.89 to $0.92. The company reported record revenue of $12.3 billion in Q1 of its fiscal year, with automotive revenue growing 15% year-over-year to $1.1 billion and Internet of Things (IoT) revenue increasing by 9% to $1.7 billion.
Qualcomm maintains a strong financial position, with $7.2 billion in cash and a manageable long-term debt of $14.8 billion. Despite concerns regarding its historical stock performance—11% total return since CEO Cristiano Amon took over in 2021 compared to a 79% return for the S&P 500—analysts view the buyback as a signal that Qualcomm may be undervalued. However, caution is advised for potential investors until more progress is seen in automotive and IoT revenues.
