Qualcomm Slides 12% Premarket as Analysts Slash Targets on Handset Weakness
QCOM sits 25% above its 52-week low of $121.99 on elevated volume (1.9× avg).
Summary
Qualcomm fell 12% in Thursday premarket trading after fiscal Q4 results showed handset revenue down 26% to $5.14B, missing the $5.25B analysts expected, with rising memory prices weighing on smartphone demand. At least eight brokers cut price targets, with Barclays now at $150 and Mizuho at $160, citing margin pressure and continued Apple modem share losses, while Evercore ISI Group maintains the stock at In-Line and raised its price target to $165 from $159. The offset is real: automotive sales jumped 89% to $1.99B and the data center ramp is arriving faster than expected, but JPMorgan notes the mix shift toward lower-margin custom ASIC revenue caps gross margin expansion, and QCT EBIT margin guidance of 20-22% carries a 3-point drag from the data center build. Guidance for the next quarter is $2.15-$2.35 adjusted EPS on $10.4B-$11.2B revenue, with revenue above consensus but earnings below it. The debate now is valuation and mix rather than demand — Morgan Stanley says iPhone losses are mostly behind the company but sees better risk-reward in AI processor leaders trading at lower multiples.
At the time of this announcement, QCOM was trading at $152.05 on NASDAQ in the Technology sector, with a market capitalization of approximately $184.9B. The 52-week trading range was $121.99 to $259.92. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.