Qualcomm (QCOM) drew attention after its smartphone-chip business disappointed investors and pressured the stock. Article 11 said Qualcomm was on track for its worst trading day since 2020 as investors reacted to handset weakness and a broader AI-semiconductor selloff. The article also said shares dropped more than 9% in early trading after the smartphone-chip business missed expectations. Official trending-ticker data later showed QCOM rebounding 6.67% to $167.20.
Market Impact
The numbers showed why investors reacted sharply. Handset revenue fell 26% to $5.14 billion, and total chip-segment sales declined 8% to $9.02 billion. At least 10 brokerages cut price targets after the report, signaling pressure on future earnings expectations. The article noted that automotive and data-center chips are expanding, but those businesses are not yet large enough to fully offset handset weakness.
What's Next
The next tests are handset demand trends, management’s diversification progress, and the pace of Apple-related revenue loss. Qualcomm needs automotive and data-center revenue to become a larger earnings contributor. Investors will also watch memory costs and margin commentary. If handset weakness persists, the rebound may fade; if diversification accelerates, the stock could regain a stronger valuation case.
Market Impact
The numbers showed why investors reacted sharply. Handset revenue fell 26% to $5.14 billion, and total chip-segment sales declined 8% to $9.02 billion. At least 10 brokerages cut price targets after the report, signaling pressure on future earnings expectations. The article noted that automotive and data-center chips are expanding, but those businesses are not yet large enough to fully offset handset weakness.
What's Next
The next tests are handset demand trends, management’s diversification progress, and the pace of Apple-related revenue loss. Qualcomm needs automotive and data-center revenue to become a larger earnings contributor. Investors will also watch memory costs and margin commentary. If handset weakness persists, the rebound may fade; if diversification accelerates, the stock could regain a stronger valuation case.