QUALCOMM Inc (NASDAQ:QCOM) shares are volatile on Tuesday amid reports that the company is in talks to acquire AI chip startup Tenstorrent.
- Qualcomm stock is showing upward bias. What should traders watch with QCOM?
Qualcomm In Talks To Acquire Tenstorrent
The Information reported Monday that Qualcomm is in discussions to acquire Tenstorrent for between $8 billion and $10 billion, a deal that would expand the company’s AI chipmaking capacity. The negotiations remain ongoing, and the report noted the valuation could still change or the deal could collapse altogether.
It’s also unclear whether a final agreement would include performance-based milestone payments, a structure commonly used in past chip startup acquisitions.
CEO Details Broader AI Device Strategy
The reported talks come as Qualcomm CEO Cristiano Amon discussed the company’s broader AI ambitions in an interview on CNBC’s “The Tech Download” podcast Monday. Amon said Qualcomm is developing more than 40 new AI-powered devices, betting that consumers will increasingly adopt smaller, personalized AI hardware such as smart jewelry, camera-equipped earbuds, pins and watches that function as personal AI agents.
“Right now, we have over 40 designs of those devices, and I’m telling you, the types of form factors are very, very broad,” Amon said.
Critical Levels To Watch For QCOM Stock
Qualcomm remains in a solid longer‑term uptrend. The stock trades 17.7% above the 50‑day simple moving average at $185.91 and 31.8% above the 200‑day simple moving average at $165.95. The golden cross that appeared in May continues to support the broader bullish structure. The short‑term picture is softer because price now sits 1.9% below the 20‑day simple moving average at $222.90, which often acts as a short‑term momentum line that traders watch closely.
RSI provides the clearest read on momentum. The indicator is at 53.69, which signals neutral conditions rather than an overextended or washed‑out setup. RSI helps measure whether recent buying or selling has become overheated. In this case, the reading suggests the stock is digesting gains rather than breaking down.
Key levels are straightforward based on the recent advance and the moving averages that sit below current price.
- Key Resistance: $248.00 — This is a round‑number zone near the upper area where rebounds have struggled to push through as the stock trades below its recent highs.
- Key Support: $191.00 — This is an area where buyers previously stepped in and it aligns more closely with the rising intermediate trend near the 50‑day region.
Qualcomm Benzinga Edge Scorecard Breakdown
The Benzinga Edge scorecard highlights how Qualcomm stacks up against the broader market across several factors.
- Momentum: Bullish, Score 88.37 — Trend strength remains supportive even with today’s pullback.
- Quality: Bullish, Score 94.49 — The company shows strong underlying business quality relative to the market.
- Value: Weak, Score 22.12 — Shares appear expensive on valuation, which can limit upside if growth expectations cool.
- Growth: Neutral, Score 43.65 — Growth metrics are mixed, which puts more weight on execution and cycle timing.
The Verdict Qualcomm’s Benzinga Edge profile is driven primarily by momentum and quality. Trend strength continues to support the longer‑term picture, while valuation remains the main drag. For bullish investors, the key focus is whether the stock can reclaim the 20‑day average and continue to hold above $191 during pullbacks.
QCOM Shares Are Dropping
QCOM Price Action: Qualcomm shares were down 0.42% at $219.89 at the time of publication on Tuesday, according to Benzinga Pro .
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