QCOM: Momentum Builds for Earnings Breakout — But $75M Antitrust Payout Still Shadows the Rally
Court: S.D. California
Case: 3:17-cv-00121
Qualcomm’s 
QCOM upcoming Q3 earnings report could mark a major inflection point for the semiconductor stock. With bullish momentum, a modest valuation, and analyst upgrades, Wall Street is watching to see if Qualcomm finally shakes its underperformer label. Still, a recent $75 million antitrust settlement remains a reminder of the company’s past legal headwinds.
Wall Street Eyes Breakout Potential
- Earnings Set for July 30: Analysts expect Q3 EPS of $2.71 (up 16.3% YoY) on $10.34B in revenue (up 10.1% YoY).
- Technical Picture: QCOM has quietly climbed 30% since April, with key resistance at $164. A breakout could confirm its bullish pattern.
- Valuation Advantage: Trading at a P/E below 17, Qualcomm is significantly discounted compared to NVIDIA (55+) and AMD (120+).
- Analyst Views:JPMorgan: Reiterated Overweight, raised price target to $200, citing strength in cloud, automotive, and IoT segments.UBS: Maintains Neutral, warns of macro pressures on key end markets.
Qualcomm recently reached a $75,000,000 cash settlement with investors who sued over longstanding antitrust violations and misleading financial reporting practices.
Timeline Overview
- Jan 17, 2017 – FTC files a complaint against Qualcomm over anticompetitive licensing terms.
- Jan 18–19, 2017 – Media coverage intensifies; QCOM plunges 18.3%.
- Jan 23, 2017 – Investors sue Qualcomm over unfair chip licensing practices and weak internal controls.
Allegations Include
- Overcharging for chip licenses and threatening supply cutoffs to manufacturers who refused terms.
- Offering royalty discounts to Apple for exclusivity.
- Violating FRAND commitments by denying patent licenses to competitors.
Investor Update
While QCOM’s growth narrative is improving—especially with cloud and IoT tailwinds—the $75M payout highlights past governance issues that investors should continue to weigh when evaluating long-term risk.
You can check more information about it and file for a payout HERE.