QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies for use in wireless voice and data communications, networking, computing, multimedia, and position location products. The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing CDMA2000, WCDMA, LTE and/or OFDMA-based 5G standards and their derivatives. The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments. It also provides development, and other services and related products to the United States government agencies and their contractors. The company was incorporated in 1985 and is headquartered in San Diego, California.

QUALCOMM Incorporated

Qualcomm Incorporated QCOM recently introduced a leading-edge automated driving system solution called Snapdragon Ride Pilot. The system was developed in collaboration with BMW. Powered by Snapdragon Ride system-on-chip, the automotive driving software stack has set a new benchmark in ADAS (Advanced Driver Assistance System). The solution’s 360° Perception Layer leverages camera and radar systems to facilitate multiple operations such as object detection, surround view, lane recognition, traffic sign interpretation, parking assistance, driver monitoring, and mapping.
The solution is compliant with the latest safety regulations and matches Automotive Safety Integrity Level and Functional Safety standards. It also comes with multi-layered encryption and threat detection to mitigate cybersecurity threats. Incorporating AI models for behavior prediction and behavior planning simplifies handling of complex driving scenarios. The major automaker BMW has already opted to deploy Qualcomm’s latest ADAS solution in its latest Neue Klasse models.
Strong emphasis on innovation and strategic collaboration with major automakers is expected to drive Qualcomm’s prospects in the automotive vertical in the upcoming quarters. During the third quarter, Qualcomm’s Automotive revenues rose 21% year over year to $984 million. Per our estimate in fiscal 2025, Qualcomm is set to generate $3.8 billion in revenues from the Automotive vertical, indicating 32.3% year-over-year growth.
Per a Grand View Research report, the ADAS market size is projected to reach $66.56 billion in 2030 from $34.65 billion in 2024 with a compound annual growth rate of 12.2%. Qualcomm is aiming to capitalize on this market trend.
How Are Competitors Faring?
In the automotive segment, the company faces competition from the NVIDIA Corporation NVDA and Intel Corporation INTC.
Intel is steadily expanding its automotive portfolio offerings. In 2025, the company introduced an AI-powered software-defined vehicle (SDV) system-on-chip. The first multi-process node chiplet architecture is expediting innovation in AI native cockpits, integrated ADAS solutions. With its comprehensive Mobileye business offerings related to cameras, in-car networking, sensor chips, roadway mapping, cloud software, machine learning and data management, Intel is gaining ground in the autonomous car technology market. Several manufacturers, such as BMW, Volkswagen, Ford and Nissan, use Intel’s Mobileye solution for driver assistance systems.
NVIDIA also boasts a robust ADAS portfolio. The NVIDIA DRIVE AGX is empowering automakers with a scalable, power-efficient and high-performance AI compute platform to drive development of next-generation ADAS. Its cutting-edge product suite, which includes NVIDIA DRIVE AGX Hyperion, AGX Thor and AGX Orin, is gaining solid market traction. Its broad partner ecosystem, which includes General Motors, Mercedes-Benz, Toyota, Volvo, and Hyundai, is driving innovation.
QCOM’s Price Performance, Valuation and Estimates
Qualcomm shares have declined 1.2% over the past year against the industry’s growth of 66.3%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company's shares currently trade at 13.47 forward earnings, lower than 35.98 for the industry.
Image Source: Zacks Investment Research
Earnings estimates for 2025 have increased 1.11% to $11.87 per share over the past 60 days, while the same for 2026 have improved 0.34% to $11.82.
Image Source: Zacks Investment Research
Qualcomm stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

QCOM Expands Automotive Portfolio: Will it Deliver Sustainable Growth?

The following are the top rated Information Technology stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
FORTINET INC (FTNT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fortinet, Inc. is engaged in cybersecurity, driving the convergence of networking and security. The Companys integrated platform, Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (SASE) and artificial intelligence (AI)-driven security operations (SecOps). Its products and services include FortiOS, FortiASIC, FortiCloud, FortiAI, FortiEndpoint, and OT Security. The FortiGuard Labs is a cybersecurity threat intelligence and research organization comprised of experienced threat hunters, researchers, analysts, engineers and data scientists who develop and utilize machine learning and AI technologies. FortiGuard and Other Security Services are a suite of AI-powered security capabilities that are integrated as part of the Fortinet Security Fabric to deliver coordinated detection and enforcement across the entire attack surface. FortiCare Technical Support Service is a per-device technical support service. It also operates Fortinet Training Institute.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FORTINET INC
UNITED MICROELECTRONICS CORP (ADR) (UMC) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: United Microelectronics Corp is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments. The Wafer Fabrication segment is mainly engaged in the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The New Business segment is engaged in the research, development, manufacture and provision of solar energy. The Company is engaged in the maintenance of a customer base across various industries, including communication, consumer electronics, computer, memory, new generation light-emitting diode (LED) and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of UNITED MICROELECTRONICS CORP (ADR)
QUALCOMM INC (QCOM) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of QUALCOMM INC
APPLIED MATERIALS INC (AMAT) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of APPLIED MATERIALS INC
TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) (TSM) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR)
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Information Technology Stocks Based On Peter Lynch - 9/8/2025

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco Large Cap Value ETF (Symbol: PWV) where we have detected an approximate $217.9 million dollar inflow -- that's a 18.4% increase week over week in outstanding units (from 18,350,000 to 21,720,000). Among the largest underlying components of PWV, in trading today Qualcomm Inc (Symbol: QCOM) is up about 1.2%, AT&T Inc (Symbol: T) is up about 0.2%, and International Business Machines Corp (Symbol: IBM) is lower by about 0.3%. For a complete list of holdings, visit the PWV Holdings page » The chart below shows the one year price performance of PWV, versus its 200 day moving average:
Looking at the chart above, PWV's low point in its 52 week range is $50.82 per share, with $64.71 as the 52 week high point — that compares with a last trade of $64.40. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Stock Split History
Funds Holding IPG
LBMH Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Invesco Large Cap Value ETF Experiences Big Inflow

The S&P 500 Index ($SPX) (SPY) today is up by +0.17%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.14%. September E-mini S&P futures (ESU25) are up +0.19%, and September E-mini Nasdaq futures (NQU25) are up +0.13%.
Stock indexes are moving higher today as bond yields decline on expectations that the Fed will start cutting interest rates as soon as this month. Signs of a weaker US labor market are knocking bond yields lower and reinforcing speculation that the Fed will cut rates as soon as the September 16-17 FOMC meeting after today’s Aug ADP employment change rose less than expected and weekly jobless claims rose to a 10-week high. The 10-year T-note yield fell to a 4-month low of 4.17% today, and the swaps market shows the chances of a Fed rate cut this month rising to 99%.
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Meanwhile, stocks are being undercut by weakness in chipmakers, led by a -5% fall in Texas Instruments after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped.
The Aug ADP employment change rose +54,000, weaker than expectations of +68,000.
US weekly initial unemployment claims rose by +8,000 to a 10-week high of 237,000, showing a weaker labor market than expectations of 230,000.
US Q2 nonfarm productivity was revised upward to +3.3% from the previously reported +2.4%, better than expectations of +2.7%. Q2 unit labor costs were revised downward to +1.0% from the previously reported +1.6%, weaker than expectations of +1.2%.
The remainder of this week’s USeconomic calendaris busy. Later today, the Aug ISM services index is expected to climb by +0.9 to 51.0. On Friday, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, “The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax.” The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances of a -25 bp rate cut at 99% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 56% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 is up +0.20%. China’s Shanghai Composite fell to a 2-week low and closed down -1.25%. Japan’s Nikkei Stock 225 closed up +1.53%.
Interest Rates
December 10-year T-notes (ZNZ5) today are up +5 ticks, and the 10-year T-note yield is down -2.9 bp to 4.188%.
Dec T-notes climbed to a 4.75-month high today, and the 10-year T-note yields fell to a 4-week low of 4.168%. Signs of a slowdown in the US labor market are bullish for T-notes after today’s weaker-than-expected ADP employment report and the rise in weekly initial unemployment claims to a 10-week high. The labor market weakness has boosted the chances of a Fed rate cut at the September 16-17 FOMC meeting to 99%, according to the swaps market. Also, today’s upward revision to Q2 nonfarm productivity and downward revision to Q2 unit labor cost are supportive for T-note prices. In addition, T-notes garnered support from today’s 1% fall in WTI crude prices to a 2-week low, which reduced inflation expectations as the 10-year breakeven inflation rate fell to a 1.5-week low of 2.395%.
European government bond yields today are moving lower. The 10-year German bund yield is down -2.5 bp to 2.716%. 10-year UK gilt yield is down -2.8 bp to 4.720%.
Eurozone July retail sales fell -0.5% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 13 months.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Homebuilders are climbing today after the 10-year T-note yield fell to a 4-month low, a bullish factor for housing demand. PulteGroup (PHM), Lennar (LEN), DR Horton (DHI), and Toll Brothers (TOL) are up more than +1%.
T. Rowe Price Group (TROW) is up more than +10% to lead gainers in the S&P 500 after Goldman Sachs said it will invest as much as $1 billion in the company and team up with the asset manager to sell private-market products to retail investors.
American Eagle Outfitters (AEO) is up more than +31% after reporting Q2 net revenue of $1.28 billion, better than the consensus of $1.23 billion.
Ciena (CIEN) is up more than +26% after reporting Q3 adjusted EPS of 67 cents, stronger than the consensus of 53 cents.
Credo Technology Group (CRDO) is up more than +10% after reporting Q1 adjusted EPS of 52 cents, well above the consensus of 35 cents.
Brinker International (EAT) is up more than +5% after Evercore ISI upgraded the stock to outperform from in line with a price target of $210.
Genuine Parts (GPC) is up more than +1% after appointing two new directors to its board in cooperation with Elliott Investment Management.
Copart (CPRT) closed up more than +1% after HSBC upgraded the stock to buy from hold with a price target of $62.
Salesforce (CRM) is down more than -7% to lead losers in the S&P 500 and Dow Jones Industrials after forecasting Q3 revenue of $10.24 billion to $10.29 billion, the midpoint below the consensus of $10.29 billion.
Science Applications International (SAIC) is down more than -5% after reporting Q2 revenue of $1.77 billion, weaker than the consensus of $1.86 billion, and cutting its 2026 revenue forecast to $7.25 billion-$7.33 billion from a previous forecast of $7.60 billion-$7.75 billion, well below the consensus of $7.63 billion.
Texas Instruments (TXN) is down more than -5% to lead losers in the Nasdaq 100 and weigh on chip makers after CFO Lizardi cautioned that the recovery in chip demand is not quite snapping back as some have hoped. Also, NXP Semiconductors NV (NXPI) and Advanced Micro Devices (AMD) are down more than -2%. In addition, GlobalFoundries (GFS), Analog Devices (ADI), Microchip Technology (MCHP), and Qualcomm (QCOM) are down more than -1%.
Caleres (CAL) is down more than -10% after reporting Q2 gross margin of 43.4%, below the consensus of 44.6%.
Gitlab Inc (GTLB) is down more than -7% after forecasting 2026 revenue of $936 million to $942 million, the midpoint below the consensus of $940 million.
Old Dominion Freight Line (ODFL) is down more than -3% after reporting less-than-truckload (LTL) tons per day for Aug fell -9.2% y/y.
Earnings Reports(9/4/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Copart Inc (CPRT), Docusign Inc (DOCU), Guidewire Software Inc (GWRE), Lululemon Athletica Inc (LULU), Samsara Inc (IOT), Science Applications International (SAIC), Toro Co/The (TTC), UiPath Inc (PATH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Gain and Bond Yields Fall as US Labor Market Cools

The S&P 500 Index ($SPX) (SPY) on Tuesday closed down by -0.69%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down by -0.55%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down by -0.79%. September E-mini S&P futures (ESU25) fell -0.65%, and September E-mini Nasdaq futures (NQU25) fell -0.76%.
Stock indexes retreated on Tuesday, with the S&P 500 and Nasdaq 100 dropping to 1.5-week lows, and the Dow Jones Industrials falling to a 1-week low. Higher bond yields on Tuesday weighed on stocks and sparked risk-off sentiment in asset markets, with the 10-year T-note yield rising +5 bp to 4.28%. Global bond yields rose on Tuesday on concerns over government finances and lingering inflation risks.
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Stock indexes maintained their losses after Tuesday's US economic reports showed the Aug ISM manufacturing index rose less than expected and July construction spending declined for the third consecutive month.
The US Aug ISM manufacturing index rose +0.7 to 48.7, weaker than expectations of 49.0. The Aug ISM prices paid sub-index price unexpectedly fell -1.1 to a 6-month low of 63.7, versus expectations of an increase to 65.0.
US July construction spending fell -0.1% m/m, right on expectations, and the third consecutive month that construction spending has declined.
This week's USeconomic calendaris busy. On Wednesday, July JOLTS job openings are expected to fall by -64,000 to 7.373 million. Also, July factory orders are expected to drop -1.4% m/m. Finally, on Wednesday, the Fed's Beige Book will be released. On Thursday, the Aug ADP employment change is expected to increase by +80,000. Also, weekly initial unemployment claims are expected to increase by +1,000 to 230,000, and Q2 nonfarm productivity is expected to be revised upward to 2.7% from the previously reported 2.4%, with Q2 unit labor costs expected to be revised downward to 1.4% from 1.6%. In addition, the Aug trade deficit is expected to widen to -$78.0 billion from -$60.2 billion in June. Finally, the Aug ISM services index is expected to climb by +0.8 to 50.9. On Friday, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, "The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax." The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances of a -25 bp rate cut at 92% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 51% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets on Tuesday settled mixed. The Euro Stoxx 50 fell to a 3-week low and closed down -1.42%. China's Shanghai Composite closed down -0.45%. Japan's Nikkei Stock 225 closed up +0.29.
Interest Rates
December 10-year T-notes (ZNZ5) on Tuesday closed down -11.5 ticks, and the 10-year T-note yield rose +5.1 bp to 4.279%.
Dec T-notes retreated on Tuesday due to supply pressures. About $55 billion of corporate debt securities are expected to be priced this week, which will prompt bond dealers to enter short positions on T-note futures as a hedge against the incoming supply. Also, rising European government bond yields weighed on T-note prices, with the 10-year German bund yields climbing to a 5-month high and the 10-year UK gilt yield rising to a 3.25-month high.
T-note prices recovered from their worst levels after Tuesday's US economic reports showed the Aug ISM manufacturing index rose less than expected and July construction spending declined for the third consecutive month. Also, the unexpected decline in the Aug ISM prices paid sub-index to a 6-month low is supportive for T-notes.
European government bond yields on Tuesday moved higher. The 10-year German bund yield climbed to a 5-month high of 2.801% and finished up +3.9 bp to 2.786%. 10-year UK gilt yield rose to a 7.5-month high of 4.822% and finished up +5.0 bp to 4.800%.
The Eurozone Aug CPI rose +2.1% y/y, right on expectations. The Aug core CPI rose 2.3% y/y, stronger than expectations of +2.2% y/y.
ECB Executive Board member Schnabel said the ECB should maintain borrowing costs at current levels with inflation risks tilted to the upside.
ECB Governing Council member Muller said the ECB can afford to keep interest rates steady at next week's meeting as inflation hovers close to its target and the economy shows resilience.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven megacap technology stocks moved lower Tuesday and weighed on the overall market. Nvidia (NVDA), Amazon.com (AMZN), Apple (AAPL), and Tesla (TSLA) closed down more than -1%. In addition, Alphabet (GOOGL) closed down -0.72%, Meta Platforms (META) closed down -0.49%, and Microsoft (MSFT) closed down -0.31%.
Chip stocks retreated on Tuesday and pressured the broader market. ARM Holdings Plc (ARM) closed down more than -4%, and Lam Research (LRCX) and KLA Corp (KLAC) closed down more than -3%. Also, Microchip Technology (MCHP) and ASML Holding NV (ASML) closed down more than -2%. In addition, Applied Materials (AMAT), Analog Devices (ADI), Qualcomm (QCOM), ON Semiconductor Corp (ON), and Texas Instruments (TXN) closed down more than -1%.
Kraft Heinz Co (KHC) closed down more than -6% to lead losers in the Nasdaq 100 after announcing plans to split into two separate companies, one made up of its Heinz ketchup and other condiments and boxed meals, and one including grocery products.
Constellation Brands (STZ) closed down more than -6% after cutting its full-year EPS estimate to $11.30 to $11.60 from a previous outlook of $12.66.
Block Inc (XYZ) closed down more than -4% after BNP Paribas Exane downgraded the stock to neutral from outperform.
Commvault Systems (CVLT) closed down more than -3% after announcing it will offer $750 million of Convertible Senior Notes due 2030.
Fortinet (FTNT) closed down more than -2% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $67.
Cytokinetics (CYTK) closed up more than +40% after giving data for a late-stage trial of its experimental therapy for heart disease that Citigroup and other analysts said exceeded expectations.
Ionis Pharmaceuticals (IONS) closed up more than +35% after announcing that its Olezarsen drug significantly reduced triglycerides and acute pancreatitis events in Phase 3 CORE and CORE2 studies for people with severe hypertriglyceridemia.
United Therapeutics (UTHR) closed up more than +33% after announcing a late-stage study of its Tyvaso Inhalation Solution for the treatment of a lung disease met its primary efficacy endpoint.
Ulta Beauty (ULTA) closed up more than +8% to lead gainers in the S&P 500 after analysts raised their earnings estimate for the stock by an average of 7.1% since the company reported earnings last Thursday.
Air Lease Corp (AL) closed up more than +7% after a group led by Sumitomo Corp agreed to buy the company for about $7.4 billion, or $65 a share.
Biogen (BIIB) closed up more than +5% to lead gainers in the Nasdaq 100 after receiving FDA approval for its weekly lecanemab-irmb subcutaneous injection for maintenance dosing in patients with Alzheimer's disease.
PepsiCo (PEP) closed up more than +1% after the Wall Street Journal reported that Elliot Investment Management has built a $4 billion stake in the company and plans to push the board of directors to make changes.
Earnings Reports(9/3/2025)
Dollar Tree Inc (DLTR), Gitlab Inc (GTLB), Hewlett Packard Enterprise Co (HPE), Macy's Inc (M), Salesforce Inc (CRM), The Campbell's Company (CPB).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Retreat as Bond Yields Climb

The S&P 500 Index ($SPX) (SPY) today is down by -1.26%, the Dow Jones Industrials Index ($DOWI) (DIA) is down by -1.23%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down by -1.38%. September E-mini S&P futures (ESU25) are down -1.25%, and September E-mini Nasdaq futures (NQU25) are down -1.33%.
Stock indexes are falling sharply today, with the S&P 500 and Dow Jones Industrials falling to 1-week lows and the Nasdaq 100 dropping to a 1.5-week low. Higher bond yields are weighing on stocks today and sparking risk-off sentiment in asset markets, with the 10-year T-note yield up +5 bp to 4.28%. Global bond yields are climbing today on concerns over government finances and lingering inflation risks.
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This week’s USeconomic calendaris busy. Later today, the Aug ISM manufacturing index is expected to climb +1.0 to 49.0. On Wednesday, July JOLTS job openings are expected to fall -64,000 to 7.373 million. Also, July factory orders are expected to drop -1.4% m/m. Finally, on Wednesday, the Fed's Beige Book will be released. On Thursday, the Aug ADP employment change is expected to increase by +80,000. Also, weekly initial unemployment claims are expected to increase by +1,000 to 230,000, and Q2 nonfarm productivity is expected to be revised upward to 2.7% from the previously reported 2.4%, with Q2 unit labor costs expected to be revised downward to 1.4% from 1.6%. In addition, the Aug trade deficit is expected to widen to -$78.0 billion from -$60.2 billion in June. Finally, the Aug ISM services index is expected to climb by +0.8 to 50.9. On Friday, Aug nonfarm payrolls are expected to rise by +75,000, and the Aug unemployment rate is expected to rise by 0.1 to 4.3%. Aug average hourly earnings are expected to increase +0.3% m/m and +3.7% y/y.
Regarding tariffs, a federal appeals court ruled late last Friday that President Trump exceeded his authority by imposing global tariffs without Congressional approval, but the court let the tariffs remain in place while appeals continue. The US Court of Appeals for the Federal Circuit Court said, "The statute bestows significant authority on the President to undertake a number of actions in response to a declared national emergency, but none of these actions explicitly include the power to impose tariffs, duties, or the like, or the power to tax." The case now appears to be headed to the Supreme Court for a final decision. According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 89% at the next FOMC meeting on September 16-17. The markets are discounting the chances at 49% for a second -25 bp rate cut at the following meeting on October 28-29.
Overseas stock markets today are mixed. The Euro Stoxx 50 fell to a 3-week low and is down -1.13%. China's Shanghai Composite closed down -0.45%. Japan's Nikkei Stock 225 closed up +0.29.
Interest Rates
December 10-year T-notes (ZNZ5) today are down -11 ticks, and the 10-year T-note yield is up +4.9 bp to 4.277%.
Dec T-notes are sliding today on supply pressures. About $55 billion of corporate debt securities are expected to be priced this week, which will prompt bond dealers to enter short positions on T-notes as a hedge against the incoming supply. Also, rising European government bond yields are weighing on T-note prices, with the 10-year German bund yields climbing to a 5-month high and the 10-year UK gilt yield rising to a 3.25-month high.
European government bond yields today are moving higher. The 10-year German bund yield climbed to a 5-month high of 2.801% and is up +4.5 bp to 2.793%. 10-year UK gilt yield rose to a 7.5-month high of 4.822% and is up +4.6 bp to 4.796%.
The Eurozone Aug CPI rose +2.1% y/y, right on expectations. The Aug core CPI rose 2.3% y/y, stronger than expectations of +2.2% y/y.
ECB Executive Board member Schnabel said the ECB should maintain borrowing costs at current levels with inflation risks tilted to the upside.
Swaps are discounting the chances at 1% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
The Magnificent Seven megacap technology stocks are under pressure today and are weighing on the overall market. Amazon.com (AMZN) is down more than -2%. Also, Nvidia (NVDA) and Alphabet (GOOGL) are down more than -1%. In addition, Apple (AAPL) is down -0.86%, Meta Platforms (META) is down -0.83%, Microsoft (MSFT) is down -0.63%, and Tesla (TSLA) is down 0.46%.
Lam Research (LRCX) is down more than -4% to lead chipmakers lower after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $92. Also, ARM Holdings Plc (ARM), KLA Corp (KLAC), Micron Technology (MU), and Qualcomm (QCOM) are down by more than -3%. In addition, Advanced Micro Devices (AMD), ASML Holding NV (ASML), Microchip Technology (MCHP), Analog Devices (ADI), Broadcom (AVGO), GlobalFoundries (GFS), and ON Semiconductor Corp (ON) are down more than -2%.
Commvault Systems (CVLT) is down more than -6% after announcing it will offer $750 million of Convertible Senior Notes due 2030.
Constellation Brands (STZ) is down more than -5% after cutting its full-year EPS estimate to $11.30 to $11.60 from a previous outlook of $12.66.
Block Inc (XYZ) is down more than -4% after BNP Paribas Exane downgraded the stock to neutral from outperform.
Fortinet (FTNT) is down more than -2% after Morgan Stanley downgraded the stock to underweight from equal weight with a price target of $67.
United Therapeutics (UTHR) is up more than +40% after announcing a late-stage study of its Tyvaso Inhalation Solution for the treatment of a lung disease met its primary efficacy endpoint.
Cytokinetics (CYTK) is up more than +32% after giving data for a late-stage trial of its experimental therapy for heart disease that Citigroup and other analysts said exceeded expectations.
Ionis Pharmaceuticals (IONS) is up more than +27% after announcing that its Olezarsen drug significantly reduced triglycerides and acute pancreatitis events in Phase 3 CORE and CORE2 studies for people with severe hypertriglyceridemia.
Air Lease Corp (AL) is up more than +6% after a group led by Sumitomo Corp agreed to buy the company for about $7.4 billion, or $65 a share.
Biogen (BIIB) is up more than +4% to lead gainers in the Nasdaq 100 after receiving FDA approval for its weekly lecanemab-irmb subcutaneous injection for maintenance dosing in patients with Alzheimer's disease.
PepsiCo (PEP) is up more than +3% after the Wall Street Journal reports that Elliot Investment Management has built a $4 billion stake in the company and plans to push the board of directors to make changes.
Earnings Reports(9/2/2025)
Academy Sports & Outdoors Inc (ASO), HealthEquity Inc (HQY), Signet Jewelers Ltd (SIG), Zscaler Inc (ZS).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Tumble on Higher Bond Yields

Looking at the universe of stocks we cover at Dividend Channel, on 9/4/25, Vontier Corp (Symbol: VNT), Western Digital Corp (Symbol: WDC), and Qualcomm Inc (Symbol: QCOM) will all trade ex-dividend for their respective upcoming dividends. Vontier Corp will pay its quarterly dividend of $0.025 on 9/25/25, Western Digital Corp will pay its quarterly dividend of $0.10 on 9/18/25, and Qualcomm Inc will pay its quarterly dividend of $0.89 on 9/25/25. As a percentage of VNT's recent stock price of $42.86, this dividend works out to approximately 0.06%, so look for shares of Vontier Corp to trade 0.06% lower — all else being equal — when VNT shares open for trading on 9/4/25. Similarly, investors should look for WDC to open 0.12% lower in price and for QCOM to open 0.55% lower, all else being equal.
Below are dividend history charts for VNT, WDC, and QCOM, showing historical dividends prior to the most recent ones declared.
Vontier Corp (Symbol: VNT):
Western Digital Corp (Symbol: WDC):
Qualcomm Inc (Symbol: QCOM):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 0.23% for Vontier Corp, 0.50% for Western Digital Corp, and 2.21% for Qualcomm Inc.
Free Report: Top 8%+ Dividends (paid monthly)
In Tuesday trading, Vontier Corp shares are currently off about 1.3%, Western Digital Corp shares are down about 2.1%, and Qualcomm Inc shares are trading flat on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Vontier, Western Digital and Qualcomm

The following are the top rated Information Technology stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
FLEX LTD (FLEX) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Flex Ltd. is the manufacturing partner that helps brands design, build, deliver and manage products. The Company delivers advanced manufacturing, data center IT and power infrastructure solutions. Its segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). The FAS segment consists of various end markets, such as Communications, Enterprise and Cloud, including data infrastructure, edge infrastructure and communications infrastructure; Lifestyle, including appliances, consumer packaging, floorcare, micromobility and audio; and Consumer Devices, including mobile and high velocity consumer devices. The FRS segment consists of end markets, such as Automotive, including mobility, autonomous, connectivity, electrification, and smart technologies; Health Solutions, including medical devices, medical equipment and drug delivery; and Industrial, including capital equipment, industrial devices, embedded and critical power offerings and renewables and grid edge.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FLEX LTD
QUALCOMM INC (QCOM) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Qualcomm Incorporated is engaged in the development and commercialization of foundational technologies for the wireless industry, including third generation (3G), fourth generation (4G) and fifth generation (5G) wireless connectivity, and high-performance and low-power computing, including on-device artificial intelligence. Its segments include Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL) and Qualcomm Strategic Initiatives. QCT develops and supplies integrated circuits and system software based on 3G/4G/5G and other technologies, including radio frequency front-end, digital cockpit and advanced driver assistance and automated driving, Internet of things including consumer electronic devices, industrial devices and edge networking products. QTL grants licenses or otherwise provides rights to use portions of its intellectual property portfolio that includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of QUALCOMM INC
APPLIED MATERIALS INC (AMAT) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of APPLIED MATERIALS INC
FORTINET INC (FTNT) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Fortinet, Inc. is engaged in cybersecurity, driving the convergence of networking and security. The Companys integrated platform, Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (SASE) and artificial intelligence (AI)-driven security operations (SecOps). Its products and services include FortiOS, FortiASIC, FortiCloud, FortiAI, FortiEndpoint, and OT Security. The FortiGuard Labs is a cybersecurity threat intelligence and research organization comprised of experienced threat hunters, researchers, analysts, engineers and data scientists who develop and utilize machine learning and AI technologies. FortiGuard and Other Security Services are a suite of AI-powered security capabilities that are integrated as part of the Fortinet Security Fabric to deliver coordinated detection and enforcement across the entire attack surface. FortiCare Technical Support Service is a per-device technical support service. It also operates Fortinet Training Institute.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of FORTINET INC
TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR) (TSM) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch is 87% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Taiwan Semiconductor Manufacturing Co Ltd is a Taiwan-based company mainly engaged in the provision of integrated circuit manufacturing services. The integrated circuit manufacturing services include process technology, special process technology, design ecosystem support, mask technology, 3DFabricTM advanced packaging and silicon stacking technology services. The Company has completed the transfer and mass production of 5nm technology, and is engaged in the research and development of 3nm process technology and 2nm process technology. The product application range covers the entire electronic application industry, including personal computers and peripheral products, information application products, wired and wireless communication system products, servers and data centers.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
Detailed Analysis of TAIWAN SEMICNDCTR MNUFCTRNG CO LTD (ADR)
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Validea's Top Information Technology Stocks Based On Peter Lynch - 9/1/2025

NVIDIA Corporation NVDA recently reported yet another stellar quarterly performance, reinforcing its dominance in the artificial intelligence (AI) and semiconductor markets. On Aug. 27, the company reported second-quarter fiscal 2026 revenues of $46.74 billion, marking a 56% year-over-year surge and surpassing the consensus estimate by 1.3%.
Back-to-back strong quarterly financial results have instilled investors’ confidence in the stock. Shares of NVIDIA have soared 29.7% year to date, outpacing the Zacks Computer and Technology sector’s gain of 12.9%.
NVDA stock has also outperformed other major semiconductor players, including Broadcom AVGO, QUALCOMM QCOM and Marvell Technology MRVL. Year to date, shares of Broadcom and QUALCOMM have risen 28.3% and 4.6%, respectively, while Marvell Technology stock has fallen 43.1%.
YTD Price Return Performance
Image Source: Zacks Investment Research
With a record-breaking data center segment and strong demand for AI-driven computing solutions, NVIDIA's growth story remains compelling. However, with the stock trading just 5.6% below its 52-week high of $184.48, investors might be wondering: Should they buy, sell or hold NVDA right now?
Data Center Segment: NVIDIA’s Growth Powerhouse
NVIDIA’s Data Center business remains the backbone of its financial strength. In the second quarter, the segment generated $41.1 billion in revenues, representing 87.9% of total sales. This marked a staggering 56% year-over-year increase and 5% sequential growth. This robust rise was mainly driven by higher shipments of the Blackwell GPU computing platforms that are used for the training and inference of large language models, recommendation engines and generative AI applications.
The demand for NVIDIA’s Hopper 200 and Blackwell GPU computing platforms has been a key catalyst as cloud providers and enterprises scale their AI infrastructure. Large cloud service providers contributed the majority of Data Center revenues, indicating continued hyperscale investment in AI-driven computing.
With AI adoption accelerating across industries, NVIDIA's stronghold in data centers makes it a critical beneficiary of this trend. The company’s leadership in AI chip development positions it well for sustained revenue growth in this segment.
NVIDIA’s Strong Financial Execution and Profitability
Beyond revenue growth, NVIDIA demonstrated exceptional financial discipline. The company reported non-GAAP gross margins of 61%, maintaining profitability despite rising operational expenses. Non-GAAP operating income jumped 51% year over year to $30.17 billion, reflecting the company’s ability to convert strong revenue growth into bottom-line gains.
NVIDIA’s outlook for the third quarter of fiscal 2026 remains upbeat. The company projects third-quarter revenues to increase 55% year over year to $54 billion, reflecting continued momentum in AI-driven demand. Gross margins are expected to remain strong at 73.5% despite increasing costs associated with ramping up Blackwell production. The Zacks Consensus Estimates for fiscal 2026 and 2027 indicate continued growth momentum for the company’s top and bottom lines.
Image Source: Zacks Investment Research
NVIDIA’s cash flow generation also remains robust. It generated free cash flow of $13.45 billion in the second quarter and $39.58 billion in the first half of fiscal 2026. The company ended the second quarter with $56.79 billion in cash, cash equivalents and marketable securities, up from $53.7 billion in the previous quarter. This strong liquidity position enables NVIDIA to reinvest in research & development, expand manufacturing capabilities and return capital to shareholders.
In the fiscal second quarter, the company returned $244 million to its shareholders through dividend payouts and repurchased stocks worth $9.72 billion. In the first half of fiscal 2026, NVIDIA paid $488 million in dividends and bought back shares worth $23.82 billion.
NVIDIA’s Premium Valuation Warrants Caution
Valuation-wise, NVIDIA is overvalued, as suggested by the Value Score of D.
In terms of forward 12-month Price/Earnings (P/E), NVDA shares are trading at 33.43X, higher than the sector’s 27.71X.
NVIDIA Forward P/E Multiple
Image Source: Zacks Investment Research
Compared with other major semiconductor players, NVIDIA is trading at a lower P/E multiple than Broadcom, while at a higher multiple than Marvell Technology and QUALCOMM. At present, Broadcom, Marvell Technology and QUALCOMM are trading at P/E multiples of 37.07, 19.46 and 13.55, respectively.
Conclusion: Hold NVDA Stock for Now
NVIDIA's outstanding second-quarter earnings results reaffirm its position as a leader in AI-driven computing. The company’s record Data Center revenues, strong profit margins and optimistic guidance for the third quarter of fiscal 2026 highlight its continued growth trajectory. While valuation is on the higher side, the company’s momentum, both operationally and financially, supports holding the stock.
NVIDIA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy, Sell or Hold NVIDIA Stock Post Strong Q2 Earnings?

Qualcomm Incorporated QCOM shares have plunged 8.3% over the past year against the industry’s growth of 36.2%. It has underperformed peers like Hewlett Packard Enterprise Company HPE and Broadcom Inc. AVGO. Hewlett Packard has surged 16.5% and Broadcom is up 82.7% over this period.
One-Year QCOM Stock Price Performance
Image Source: Zacks Investment Research
Adverse China Trade Relationships Hurt QCOM
Much of these hardships can be attributed to the continued U.S.-China trade spat. The chip-making firm has a significant presence in more than 12 cities in China, aiming to drive advancements in semiconductors and mobile telecommunications for the larger benefit. The company has been a key supplier of chips and other related components to local smartphone manufacturers like Xiaomi, Huawei and its spin-off brand Honor. However, it appears that Qualcomm is increasingly finding it difficult to maintain its operations in China.
The U.S. Commerce Department has long imposed various trade restrictions against China that banned the sale of high-tech equipment, chips, components and related technology to develop high-end smartphones and AI-enabled chips. The U.S. administration recently extended the tariff truce for another 90 days despite threatening to impose additional tariffs to such an extent that could potentially “destroy China”.
QCOM Margins Eroded by High R&D Costs
To add to the woes, Qualcomm's margins have declined over the years due to high operating expenses and R&D (research & development) costs. The company expects softness in the handset market and a weaker overall mix of devices to continue in the near future. The shift in the share among original equipment manufacturers at the premium tier has reduced the near-term opportunity to sell integrated chipsets from the Snapdragon platform. In addition, Qualcomm faces stiff competitive pressures from rivals Broadcom and Hewlett Packard.
Aggressive competition from low-cost chip manufacturers and established players in the mobile phone chipset market is also likely to hurt Qualcomm's profits. Although the global smartphone market is expected to maintain its momentum over the next three to four years, a major portion of this growth is likely to come from the low-cost emerging markets, which may weigh on Qualcomm's margins.
Image Source: Zacks Investment Research
Snapdragon, Automotive Businesses Buoy QCOM
Despite the short-term headwinds, Qualcomm is benefiting from investments toward building a licensing program in mobile. The company is well-positioned to meet its long-term revenue targets driven by solid 5G traction, greater visibility and a diversified revenue stream. In addition, the chip manufacturer envisions solid growth opportunities within the mobile space, driven by the strength of its Snapdragon portfolio.
Leveraging processors with multi-core CPUs with cutting-edge features, amazing graphics and worldwide network connectivity, Qualcomm Snapdragon mobile platforms are fast with superb power efficiency. Smartphones and mobile devices built with Snapdragon mobile platforms enable immersive augmented reality and virtual reality experiences, brilliant camera capabilities, superior 4G LTE and 5G connectivity with state-of-the-art security solutions.
Qualcomm is currently foraying deeper into the realm of AI capabilities within the laptop and desktop business with the launch of the Snapdragon X chip for mid-range AI desktops and laptops. The strategy is aimed at moving beyond the slowing smartphone industry, which is its primary breadwinner. In addition to diversifying its revenue stream, this is likely to further extend QCOM’s AI footprint.
The automotive telematics and connectivity platforms, digital cockpit and C-V2X solutions are fueling emerging automotive industry trends such as the growth of connected vehicles, the transformation of the in-car experience and vehicle electrification. Qualcomm is gradually gaining traction in the vehicle-to-everything (V2X) communication systems market with the buyout of Autotalks. With seamless access to Autotalks’ comprehensive V2X expertise, Qualcomm has been able to offer an extensive suite of automotive-qualified global V2X solutions for installation in vehicles, as well as 2-wheelers and roadside infrastructure. The company’s V2X chipsets offer production-ready standalone solutions that are purpose-built for global applications, resulting in direct communication becoming more pervasive.
Estimate Revision Trend for QCOM
Earnings estimates for Qualcomm for fiscal 2025 have moved up 8.6% to $11.87 over the past year, while the same for fiscal 2026 has declined 2.5% to $11.86. The mixed estimate revision depicts that investors are skeptical about the growth potential for the stock.
Image Source: Zacks Investment Research
End Note
With robust automotive and Snapdragon traction, Qualcomm appears to be relatively better placed in terms of its portfolio strength. A strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. With a mixed bag of earnings estimates, the stock is witnessing neither too positive nor too negative investor sentiments.
Moreover, stiff competition and softness in key end markets are likely to put pressure on the bottom-line growth. High R&D costs erode its profitability to a large extent. Qualcomm is facing a tough operating environment in China amid escalating tariffs, raising questions about its long-term viability plans in the communist country. With a Zacks Rank #3 (Hold), Qualcomm appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

QUALCOMM Incorporated

Price history and volume

Shares 360

Investment risk — medium

Investment potential — medium

AI Factors

Internet of Things

stagflation

United States - China Relations

Generative AI

Self-driving Cars

Japanese Economy

Inflation

Labor Costs

Cloud Computing

USD Average Exchange Rate

Quantum Computing

Security parameters