Why Is Qualcomm (QCOM) Stock Moving Higher Today? $20B Buyback Plan

Shares of Qualcomm Incorporated (NASDAQ: QCOM) are trading higher on Tuesday after the semiconductor giant announced a sweeping capital return initiative that caught Wall Street’s attention. The San Diego-based chipmaker revealed a new $20 billion stock repurchase authorization alongside a dividend increase of over 3%, sending shares up more than 2% in early trading. The announcements, made before markets opened on March 17, 2026, signal management’s confidence in the company’s financial position and its ongoing commitment to rewarding shareholders even as the broader smartphone market faces headwinds.

Qualcomm Unveils $20 Billion Buyback and Dividend Boost

Qualcomm’s Board of Directors approved the new $20 billion stock repurchase authorization effective immediately, adding to the approximately $2.1 billion remaining under a prior buyback program launched in November 2024. Unlike many repurchase programs, the new authorization carries no expiration date, giving the company maximum flexibility in timing and execution.

Repurchases may be conducted through open market transactions, prearranged 10b5-1 trading plans, accelerated share repurchase programs, privately negotiated transactions, or derivative instruments, and may be started or paused at management’s discretion without prior notice.

Alongside the buyback, the Board approved a quarterly cash dividend increase from $0.89 to $0.92 per share — a rise of just over 3%. The new dividend level translates to an annualized payout of $3.68 per share and will apply to dividends payable after March 26, 2026.

The combined announcements underscore what CEO Cristiano Amon described as a commitment to returning capital while maintaining operating discipline and pursuing diversification opportunities across automotive, IoT, and other verticals beyond smartphones.

Amon stated that the company remains focused on extending its technology and product leadership across verticals while executing on diversification opportunities. Qualcomm’s Snapdragon platform continues to power mobile devices worldwide, while its Dragonwing product line targets enterprise and industrial applications, a strategic pivot that management has emphasized as key to long-term revenue resilience.

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QCOM Stock Brief: Price, Trends, and Key Metrics

As of Tuesday morning trading on March 17, 2026, QCOM shares were changing hands at approximately $131.99, up around $2.60 (+2.01%) on the session, with an intraday range of $132.32 to $134.05. The stock opened at $133.52 following a previous close of $129.39, and volume was running well below the average of approximately 9.8 million shares, suggesting the move was driven by the news rather than broad speculative activity.

The company’s market capitalization stood at roughly $141.35 billion intraday, with a 52-week range spanning $120.80 to $205.95, indicating that shares remain well off their yearly highs.

From a valuation standpoint, QCOM trades at a trailing price-to-earnings ratio of about 26 times earnings, while its forward P/E of approximately 11.6 points to expectations of meaningful earnings growth ahead.

The stock’s PEG ratio of 0.54 suggests it may be undervalued relative to its growth trajectory, and its levered free cash flow of $10.42 billion over the trailing twelve months provides ample firepower to support both the buyback and dividend commitments. Revenue over the same period reached $44.87 billion, with net income attributable to common shareholders of $5.37 billion.

Analyst sentiment on QCOM is mixed heading into the announcement. The average analyst price target sits at $159.15, implying meaningful upside from current levels, though the most recent rating action came from Seaport Global, which downgraded the stock to Sell with a $100 price target on March 16. On the more constructive side, Rosenblatt holds a Buy rating.

he stock has significantly underperformed the broader market year-to-date, declining roughly 22% compared to the S&P 500’s modest loss of about 1.4%, making today’s capital return news a potential catalyst for a reassessment of the stock’s near-term trajectory. The next earnings date is estimated for April 29, 2026.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.