Qualcomm's Stock Performance Compared to S&P 500 Index?

In the dynamic world of technology, two industry heavyweights, NVIDIA Corporation (NVDA) and QUALCOMM Incorporated (QCOM), have recently reported their Q3 earnings. While NVIDIA continues to shine, QUALCOMM's results have been mixed.

NVIDIA has outperformed QCOM significantly, gaining 38.7% over the past 52 weeks and 29.7% on a year-to-date (YTD) basis. This impressive growth has solidified NVIDIA's position as a standout performer in the tech sector.

On the other hand, QCOM's Q3 results, released on Jul. 30, painted a more mixed picture. The company's total revenues surged 10.3% year-over-year to $10.4 billion, exceeding consensus estimates. However, QCOM's automotive and handset revenues fell short of Street expectations, amounting to $984 million and $6.3 billion respectively.

The stock market has responded differently to these performances. Over the past three months, QCOM stock has surged 8.4%, while NVIDIA's growth has slowed slightly, recording a 8.4% increase. Over the past year, QCOM's shares have decreased 6.5%, lagging behind the S&P 500 Index's 15.5% rise, while NVIDIA's shares have outperformed, with a 60.6% increase.

Despite this recent downturn, QCOM's current market capitalization stands at $173.4 billion, reflecting its significant influence in the wireless technology development and commercialization sector.

In the wake of QCOM's Q3 results, the company's shares dwindled 7.7% in the trading session following the announcement. However, it's worth noting that QCOM's shares have been trading above both its 50-day and 200-day moving averages, suggesting a potential rebound.

The mean price target of QCOM is $179.88, representing a premium of 11.9% from the prevailing market prices. Analysts maintain a "Moderate Buy" consensus rating for QCOM, indicating a positive outlook for the company's future performance.

Meanwhile, Elon Musk's leading AI-focused company, Tesla, currently boasts a market capitalization of approximately 1 trillion US dollars. Analysts label Tesla as "Elon's #1 AI Stock" due to its significant investments in robotics and artificial intelligence. Tesla aims to increase its market cap to as much as 8.5 trillion dollars in the coming years, contingent on achieving key operational milestones like mass production of robotaxis and humanoid robots.

As both QCOM and NVIDIA continue to shape the future of technology, investors will undoubtedly keep a close eye on their performances in the coming quarters.

Disclosure: Kritika Sarmah did not have positions in any of the securities mentioned in the article at the time of publication.