China’s market regulator announced an investigation into Qualcomm Inc (NASDAQ: QCOM) recent acquisition of Israeli firm Autotalks, stating that it coudl have violated the coutnry’s anti-monopoly law through the purchase.
Announced on Friday, the move has heightened tensions between Washington and Beijing ahead of expected talks between President Donald Trump and Chinese President Xi Jinping later this month.
The USd$350 million acquisition officially closed in June, more than two years after it was first announced. The regulator said it would open a formal probe but provided no further details.
Qualcomm stated it is fully cooperating with Chinese authorities and remains committed to supporting its partners and customers in the region. The company supplies chips to major Chinese smartphone makers, including Xiaomi.
U.S. technology firms have recently faced increased scrutiny from Chinese regulators. In September, SAMR accused Nvidia (NASDAQ: NVDA) of breaching anti-monopoly rules linked to its earlier purchase of Mellanox Technologies. Furthermore, Beijing has reportedly urged domestic companies to avoid buying Nvidia chips.
Meanwhile, China has tightened export controls on rare earths and related technologies. These materials are essential to industries such as defense, automotive manufacturing, and semiconductors. The move adds another layer of pressure in the ongoing technology standoff between the two countries.
The renewed tensions come as Trump and Xi prepare to meet on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea, during the last week of October. Analysts say the Qualcomm investigation could become another flashpoint in the widening competition over advanced technology and global supply chains.
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Qualcomm holds a moderate buy rating
Analysts remain generally optimistic about Qualcomm, despite recent regulatory challenges in China.
As of mid-October 2025, Qualcomm holds a “Moderate Buy” consensus rating. Out of 24 recent analyst evaluations, 12 recommend buying the stock, 10 suggest holding, and 1 advises selling. The average 12-month price target sits at USD$182.82, implying a potential upside of roughly 11 per cent from the current price of around USD$164.
The highest price target among analysts is USD$225, reflecting confidence in Qualcomm’s strategic positioning and product portfolio.
Despite these challenges in China, analysts continue to view Qualcomm’s long-term prospects positively. Its strong position in the semiconductor industry and strategic acquisitions aimed at expanding AI and data center capabilities support this outlook. The company’s diversified portfolio and ongoing innovations are expected to maintain its growth trajectory, even amid short-term regulatory hurdles.
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joseph@mugglehead.com
