Based on the volatility indicators of QCOM and the inverse relationship with NVDA and AMD, most investors are taking profits to position for cheap AMD recovery and to position for NVDA’s earning calls.

With the strong guidance ahead beating estimates, we think that QCOM will continue to rise after the initial profit taking session for today is over.

Upside potential of 185-190 is clear given that the certainty of the current quarter is established, we anticipate traders to rotate back later next week.

With such a strong results and currently cheap price relative to historical price, QCOM is still a good stock to hold. Similarly, AMD suffers an even crazier drop after earnings beat amidst a weaker forecast. And today, AMD is bouncing up by close to potentially 3% by market close.

With the new proposed $15billion share buyback and Trump’s policies, there are also speculations on the improved odds of acquiring Intel. The current dip is only temporary as fundamentals and forecasts are both strong.

As we can see, a similar pattern is also spotted after WDC's better than expected earnings call and its reversal after that.