The stock fell on Wednesday as investors locked in gains following its sharp rally.

The stock fell on Wednesday as investors locked in gains following its sharp rally driven by AI chip-related momentum. • Qualcomm stock is showing notable weakness. Why are QCOM shares down? Qualcomm Expands Into AI Data-Center Infrastructure Bloomberg reported Tuesday that Qualcomm reached a deal to supply TikTok parent ByteDance with application-specific integrated circuits (ASICs) for AI data centers. According to the report, ByteDance plans to purchase millions of Qualcomm chips to support its AI agent software initiatives, marking another step in Qualcomm's push beyond smartphone processors and into AI infrastructure markets. Traders Weigh AI Opportunity Against Market Pullback Despite the ByteDance headline, Qualcomm underperformed some semiconductor peers amid broader market weakness, with the Nasdaq falling 0.5% and the Russell 2000 declining 0.3%, while the Communication Services sector gained 0.8%. The muted reaction suggested traders may have already priced in much of Qualcomm's AI upside following the stock's recent strength, leading to stock-specific profit-taking even after positive news. Qualcomm Pushes Beyond Smartphones and Wireless Chips Qualcomm remains one of the world's largest wireless-chip suppliers, generating revenue from both semiconductor sales and licensing technology tied to 3G, 4G, and 5G standards, including CDMA and OFDMA. In addition to smartphones, the company sells RF front-end modules and chips for automotive and Internet of Things applications. The ByteDance agreement highlights Qualcomm's broader strategy to expand into AI infrastructure and diversify beyond its traditional handset business as demand for AI computing continues to accelerate. Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the July 29 (estimated) earnings report. EPS Estimate: $2.09 (Down from $2.77 year-over-year) Revenue Estimate: $9.67 billion (Down from $10.37 billion YoY) Valuation: P/E of 26.8x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Hold rating with a consensus price target of $174.54. Recent analyst moves include: Tigress Financial: Buy (Raises target to $280 on May 8) Daiwa Capital: Upgraded to Outperform (Raises target to $225 on May 8) JPMorgan: Neutral (Raises target to $160 on April 30) QCOM Price Action QCOM Stock Price Activity: Qualcomm shares were down 7.52% at $229.75 at the time of publication on Wednesday, according to Benzinga Pro data. Photo: Shutterstock

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