On August 5, Qualcomm declined 3.12% in regular trading, trading at $157.52/share with turnover of $545 million. The stock partially reversed its prior session's 5%-plus rally as multiple headwinds continued to pressure shares.
The decline reflects ongoing digestion of weak fiscal Q3 results and a soft Q4 outlook. Net income fell 25% year-over-year to $2 billion, while Q4 adjusted EPS guidance of $2.05-$2.25 came in well below the analyst consensus of $2.36. Handset revenue dropped 20% to $5.1 billion, with management warning that Apple-related revenue will accelerate its decline. Additionally, an SEC filing revealed that shareholders from a modular acquisition transaction may resell up to 17,826,566 shares, amplifying supply-side concerns.
Multiple investment banks have slashed price targets, with Wells Fargo cutting to $170 from $265 and Bernstein lowering to $165 from $235. Within the semiconductor sector, performance diverged, with NVIDIA up 3.35% and AMD down 6.84%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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