Qualcomm’s relative strength index (RSI) has climbed back above the oversold 30 threshold after the shares dropped roughly 15% over the last two weeks on investor worries about missing the AI wave. The last time Qualcomm’s RSI rebounded from a similar level—in April 2025—the stock went on to gain about 70% over the following eight months. With the RSI now stabilizing around 35 and the 14-day moving average flattening out, technical analysts argue the sell-off may have been overdone and set the stage for a meaningful bounce once quarterly results are in.

On January 25, Mizuho Securities reduced its 12-month price target for Qualcomm from $175 to $160, reflecting a more cautious near-term view on handset growth and supply-chain constraints. Yet major institutions are still accumulating stock: Commerzbank Aktiengesellschaft FI added 1.7% more shares in the fourth quarter, lifting its stake to 472,843 shares valued at $78.7 million, now representing 1.6% of its total portfolio. First Citizens Bank & Trust and other large funds likewise increased positions by nearly 4% in Q3, underscoring a belief that the pullback is temporary and long-term prospects remain intact.

Billionaire hedge-fund manager David Tepper’s latest 13F filing shows Appaloosa Management materially raised its Qualcomm exposure in Q3 as part of a broader rotation out of mature AI names into high-potential but underappreciated chipmakers. Tepper’s team cited Qualcomm’s expanding Snapdragon AI200/250 inference offering and the company’s fast-growing automotive segment, which delivered 36% revenue growth in 2025. Trading at a forward price-to-earnings multiple near 13, Qualcomm ranks among the cheapest pure-play AI suppliers, making it a contrarian target for investors seeking value in next-generation edge-AI deployments.

Investors will be watching Qualcomm’s Q4 earnings release, scheduled for mid-February, for signs of progress on personal-AI use cases in IoT devices and edge computing adoption. Management’s commentary on China smartphone shipments, automotive design wins, and initial roll-out plans for the AI200 series will be key. Additionally, any updates on 5G baseband chipset customer transitions and capital-allocation decisions—particularly on share repurchases or dividend increases—could trigger another leg of outperformance if the company confirms sustained margin expansion.