Qualcomm Inc (NASDAQ:QCOM) is down 6.9% in premarket trading at $206.63, after Bloomberg reported the semiconductor giant is in advanced talks to acquire AI software infrastructure company Modular in a deal valued at roughly $4 billion. The news arrives amid broad weakness in the chip sector, with technology stocks under pressure as a global selloff in AI-related names weighs on sentiment.
Today's projected drop could pull the stock further away from its May 29 record high of $259.92. The shares have been volatile since that peak, shedding nearly 12% so far this month. Even so, QCOM remains up 29.7% in 2026 and 46.6% higher over the past 12 months.
BofA Global Research doled out a price-target hike to $195 from $165 this morning, but Wall Street remains cautious. Of the 33 analysts in coverage, 20 carry a "hold" rating, compared to just 11 "buy" or "strong buy" recommendations and two sells.
Options traders have been considerably more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), Qualcomm's 50-day call/put volume ratio of 4.04 ranks higher than 91% of readings from the past year.
