Qualcomm’s relative strength index climbed above 70 for the first time since mid-2023, signaling an overbought condition that historically preceded a strong rally. The last instance when QCOM’s RSI hit this level, the stock advanced roughly 70% over the subsequent six months. Over the past two weeks, shares have retraced about 15% from their early-year peak, trading in the mid-150 range despite a solid start to 2026. Investors monitoring momentum indicators may view the current RSI reading as a contrarian buy signal given the company’s underlying fundamentals and long-term growth drivers.

On January 25, 2026, Mizuho Securities analyst Vijay Rakesh lowered his 12-month price target from 175 to 160, citing a more cautious near-term outlook for semiconductor demand. Despite the downward adjustment, the target remains slightly above current trading levels, reflecting continued confidence in Qualcomm’s technology roadmap. Institutional activity underscores that optimism: Commerzbank Aktiengesellschaft FI boosted its stake by 1.7%, now holding 472,843 shares worth approximately 78.7 million and representing 1.6% of its total portfolio as the firm’s 20th largest position. First Citizens Bank and Trust Co. also increased its Qualcomm position by 3.9% in the third quarter, signaling broad support from major asset managers.

Billionaire David Tepper’s Appaloosa Management added Qualcomm to its equity lineup following profit-taking in other chipmakers. Tepper highlighted Qualcomm’s undervaluation relative to its end-market potential, noting that the company has generated a staggering 31,000% return since its IPO yet has traded sideways over the past two years. Qualcomm’s upcoming AI200 and AI250 inference chips, set for release in 2026 and 2027, target on-device and rack-level applications, while its automotive segment delivered 36% revenue growth in 2025. Trading at a forward P/E of 13 and with a market capitalization near 167 billion, Qualcomm offers a value-oriented entry into the proliferation of AI across smartphones, data centers and connected vehicles.