Qualcomm’s Relative Strength Index (RSI) recently recovered above the oversold 30 threshold after dipping below it two weeks ago. This technical reversal mirrors the setup seen in April 2025, which preceded a sustained 70% rally over the following six months. The speed of the RSI rebound—from a low of 25 to above 30 in just four trading sessions—suggests renewed buying interest among momentum traders, potentially signaling that the worst of the short-term selling pressure has passed.

Over the past fortnight, Qualcomm’s shares have declined by approximately 15%, pressured by concerns that the company may lag in the broader AI transformation. Despite this pullback, the chip designer has continued to secure design wins in personal AI applications across the Internet of Things and edge computing. Upcoming quarterly results, due in early February, represent a key catalyst: analysts project that revenue from IoT and automotive segments could grow year-over-year by mid-single digits, helping to offset slower smartphone demand.

Major institutional investors have increased their stakes in Qualcomm during the recent sell-off. Commerzbank Aktiengesellschaft FI added 1.7% to its position, bringing its total to 472,843 shares valued at $78.7 million, making Qualcomm one of its top 20 holdings. First Citizens Bank and Trust Co. also boosted its position by 3.9% in the third quarter. These moves underscore a growing conviction among long-term investors that the recent decline offers a favorable entry point given the company’s technology leadership and expanding AI roadmap.

As Qualcomm approaches its fiscal Q1 earnings release, technical indicators beyond the RSI are beginning to stabilize. Trading volume has trended above the 50-day average for five consecutive sessions, and the 20-day moving average has started to flatten, reducing downward momentum. Analysts expect gross margin expansion of 50–100 basis points, driven by higher-margin IoT and automotive chip sales. Should Qualcomm deliver on these targets, the combination of improving fundamentals and a healthier technical profile could set the stage for a renewed uptrend.