Trump Talks of China Rethinking $44 Billion Qualcomm (QCOM, $58.26)-NXP Deal - But Will the Two Firms Be Ready For It?
In July, U.S. chipmaker Qualcomm had to drop its plan of buying Dutch multinational rival NXP, apparently due to heated trade tensions between the U.S. and China. And now, U.S. President Donald Trump claims that Chinese President Xi Jinping might approve the acquisition, following Saturday's trade talks between the two leaders.
Ever since its announcement in October 2016, the $44 billion proposed merger between Qualcomm and NXP got approvals from eight jurisdictions, but was awaiting China's decision. In late July, Qualcomm thought that it was best to walk away from the deal since Chinese regulators had not responded even at the eleventh hour before the deadline expired. But following late last week’s talks with Xi, Trump said about Xi and the deal, "If that deal came back to him, he would most likely approve it quickly". China, however, did not mention the Qualcomm-NXP deal in the official statement it released after the meeting with Trump.
Even if there are hopes that China could reconsider the acquisition, question is - will NXP or Qualcomm or both be willing to pursue the merger again? Qualcomm has already gone ahead with its $30 billion of stock buyback plan and has paid NXP $2 billion in break up fee – expenses Qualcomm promised to bear should the merger fall through.
QCOM's RSI Oscillator peaks and leaves overbought zone
The 10-day RSI Indicator for QCOM moved out of overbought territory on October 28, 2025. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 instances where the indicator moved out of the overbought zone. In of the 27 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on November 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on QCOM as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for QCOM turned negative on November 07, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
QCOM moved below its 50-day moving average on November 17, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where QCOM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where QCOM advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
QCOM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.389) is normal, around the industry mean (10.190). P/E Ratio (33.156) is within average values for comparable stocks, (78.927). Projected Growth (PEG Ratio) (0.555) is also within normal values, averaging (1.688). Dividend Yield (0.021) settles around the average of (0.023) among similar stocks. P/S Ratio (4.144) is also within normal values, averaging (33.456).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. QCOM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
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General Information
a provider of wireless communication systems
Industry Semiconductors
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