Qualcomm stock (NASDAQ: QCOM) took a hit in premarket trading on Friday after China’s antitrust watchdog, the State Administration for Market Regulation (SAMR), announced it is opening an investigation into the company’s acquisition of Israeli chipmaker Autotalks.
The probe will look into whether Qualcomm “failed to properly disclose some details” during the deal.
Investors reacted quickly, selling off shares as they considered the possible regulatory headaches in one of Qualcomm’s key markets.
Qualcomm stock: Behind the sharp decline
The Friday selloff was sparked by SAMR’s announcement that it’s taking a closer look at how Qualcomm handled the Autotalks deal, which the company wrapped up earlier this year after already navigating some regulatory hurdles.
According to Reuters, the regulator is worried that Qualcomm might not have fully disclosed certain details when seeking approval.
Investors are also keeping the company’s history in China in mind, including a multi-hundred-million-dollar settlement back in 2015, which could make the current situation feel even riskier.
Market data showed Qualcomm stock dipping a few percentage points in premarket trading as investors grappled with the uncertainty.
Reports from both Asia and the US pointed to early drops ranging from just under 1% to over 3%, reflecting worries about potential fines, operational restrictions, or delays in getting approvals for Qualcomm’s China business.
Analysts and traders also noted the bigger picture as rising US-China tech tensions and recent scrutiny of other Western chipmakers, which seems to be making the market extra sensitive to any regulatory moves out of Beijing.
Why analysts see upside
Despite the short-term dip, many analysts remain optimistic about Qualcomm’s medium-term prospects.
Market data services show that consensus 12-month price targets are well above where the stock is trading right now.
For example, MarketBeat’s data puts the average target around $182.82, suggesting double-digit upside, while TipRanks shows a similar picture, with analysts pointing to roughly 8–10% potential gains.
Analysts highlight several strengths that make Qualcomm attractive over the long run: its dominant position in mobile modem and RF licensing, growing opportunities in AI-capable smartphones, and an expanding footprint in areas like automotive and IoT.
Even with the recent regulatory jitters, coverage of the stock shows a wide range of price targets, some bullish calls are in the high $180s to $200s, reflecting confidence that long-term trends like 5G rollout and on-device AI can outweigh occasional regulatory hurdles.
The SAMR investigation has certainly added some short-term volatility for Qualcomm, but the overall market sentiment still leans toward cautious optimism.
Investors will be keeping an eye on official filings, any formal updates from Chinese regulators, and statements from Qualcomm’s management to get a clearer picture of how big an impact the probe might have.
For now, analysts say the company’s strong position in AI and 5G remains the main reason for potential long-term upside.
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