QCOM: 5G and AI Momentum Builds — Yet $75M Antitrust Settlement Casts a Shadow

Court: S.D. California

Case: 3:17-cv-00121

Qualcomm’s surging trading volume and latest tech innovations are fueling optimism around its AI and 5G expansion. But a $75 million settlement over past anticompetitive practices continues to weigh on the outlook.

Key Developments and Analyst Highlights

• Qualcomm's trading volume hit 10.91 billion on July 22, ranking 84th in market activity despite a 0.62% stock decline.
• A new 5G automotive partnership with a leading manufacturer is expected to expand QCOM’s footprint in connected vehicles.
• Qualcomm filed several AI and machine learning patents, bolstering its technology leadership and IP portfolio.
• Recent breakthroughs in semiconductor design reinforce Qualcomm’s R&D-driven growth strategy.
• The company remains a central player in AI, edge computing, and 5G infrastructure amid broader chip sector volatility.

Timeline Overview

• January 17, 2017: FTC filed a complaint alleging Qualcomm used anticompetitive licensing tactics.
• January 19, 2017: Following widespread media coverage, QCOM dropped over 18%.
• January 23, 2017: Investors filed a lawsuit claiming financial reporting deficiencies and market manipulation.

Allegations Include

• Overcharging for chip licenses and refusing to sell chips to manufacturers unwilling to accept Qualcomm’s terms.
• Providing Apple with reduced royalty fees in exchange for exclusive chip use.
• Violating industry-standard FRAND licensing obligations by withholding access to patents.

Investor Update

• Qualcomm agreed to pay $75 million to settle investor claims tied to the 2017 FTC complaint.
• The settlement resolves long-standing litigation but highlights prior governance and compliance risks.
• Despite the payout, investor confidence has been buoyed by QCOM’s AI momentum and patent wins.

You can check more information about it and file for a payout HERE.