Actively rewarding shareholders! Qualcomm (QCOM.US) announces a new round of $200 billion share buyback plan and increases its quarterly dividend.

One of the world's largest smartphone processor manufacturers, Qualcomm (QCOM.US), announced plans to increase returns to shareholders. The company plans to add a $20 billion stock buyback program and raise quarterly cash dividends. According to a statement released by the company, Qualcomm's board of directors has approved a new stock buyback authorization, supplementing the buyback plan announced in November 2024. At the same time, the company also announced an increase in quarterly dividends, with dividends rising from $0.89 to $0.92 per share starting after March 26, and annual dividends rising to $3.68 per share. Headquartered in San Diego, California, United States, Qualcomm is a leading global mobile chip design company, with its processors widely used in smartphones and other mobile devices. The company has been returning cash to shareholders through stock buybacks and dividends in recent years, demonstrating confidence in its cash flow and long-term business prospects. However, Qualcomm's near-term business prospects still face challenges. Last month, the company issued relatively cautious revenue guidance, stating that the global semiconductor shortage is affecting the production plans of some customers, especially smartphone manufacturers in the Chinese market. This may lead to a decrease in smartphone shipments, affecting Qualcomm's chip demand. Against this backdrop, Qualcomm's CEO Cristiano Amon is driving the company's business transformation, aiming to reduce reliance on the smartphone market. The company is actively expanding into new business areas such as automotive chips, PC processors, and data center-related chips, but these new growth areas are currently not sufficient to fully offset the slowdown in the core mobile chip market. Boosted by the news of stock buybacks and increased dividends, Qualcomm's stock price rose over 1.9% on Tuesday. The market generally believes that large-scale buyback and dividend plans help boost investor confidence and provide support for stock prices in the short term.