Qualcomm faces the loss of Apple's business. High memory costs are also weighing on overall smartphone demand.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on MarketWatch ↗
Keywords
Open a keyword to see other news on the same topic.
Related news
- Should You Buy Qualcomm Stock Before Its Nov. 4 Report?
Qualcomm shares fell 11% on Oct. 30 to close at $164.79 amid a chip sell-off triggered by Intel's weaker fourth-quarter revenue forecast and its warning that the PC slowdown could last until at least mid-2027. Handset chip revenue dropped 20% in the June quarter to $5.1 billion, hurt by tight memory supply and a much lower expected share of new iPhone launches, and Qualcomm forecast Apple revenue falling about 50% from the September to the December quarter. Guidance for fiscal fourth-quarter revenue is $9.7 billion to $10.5 billion, with non-GAAP EPS of $2.05 to $2.25. Two custom chip deals with large cloud companies are expected to start generating revenue in the December quarter, while automotive sales rose 61% to a record $1.6 billion. The author says the stock trades at about 17 times expected fiscal 2027 earnings, a little below the S&P 500's roughly 19 times, and is not in a rush to invest before the report, preferring to watch actual data center revenue.
- Qualcomm Pledges Global Layoffs as Handset Revenue Falls 20%: “Stronger Performance Culture”
Qualcomm (QCOM) will notify employees of global, performance-based job cuts starting in November, according to a memo from CEO Cristiano Amon that did not give a headcount. The company had about 52,000 employees at the end of fiscal 2025. In fiscal Q3, handset revenue fell 20% to $5.09 billion while automotive revenue rose 61% to $1.59 billion. Fiscal Q4 EPS guidance of $2.05 to $2.25 trails the $2.36 consensus, and Apple revenue is declining faster than planned. Management targets $40 billion in non-handset revenue by fiscal 2029, and Qualcomm reports fiscal Q4 results on November 4.
- Should You Buy Qualcomm Stock For Its Cash?
Over the last twelve months, Qualcomm generated free cash flow equal to 5.5% of its market value, above the 4.4% yield for the median S&P 500 company, yet its revenue fell in each of its last two quarters. Free cash flow has declined for two consecutive years, from $12.6 billion in the twelve months to June 2024 to $10.4 billion in the twelve months to June 2026. Management attributed weaker phone chip sales to industry-wide memory prices, expects Apple revenue to step down faster in fiscal Q4 2026, and is raising chip prices by a double-digit percentage. Automotive chip revenue hit a record $1.6 billion in fiscal Q3, and the company now targets $40 billion of revenue outside phones by fiscal 2029, up from $22 billion. The article notes debt of $15.3 billion against $8.3 billion in cash and short-term investments, with operating profit at 14.9 times interest costs, and says the key question is whether free cash flow can steady as Apple revenue declines.
- Qualcomm's Stock Falls as Supply Costs Eat Into Profit Outlook
Qualcomm reported revenue above expectations but warned that margins in its chip-design segment will be weaker ahead. The article links the stock decline to supply costs eating into the profit outlook.
- Qualcomm stock drops 5% on weak earnings forecast as memory shortage weighs on smartphone sales
Qualcomm's quarterly adjusted EPS of $2.17 and revenue of $10.32 billion slightly beat LSEG consensus, but the stock slid in extended trading. For the current quarter, Qualcomm forecast EPS of $2.15 to $2.35 and revenue of $10.4 billion to $11.2 billion, while analysts had expected $2.27 and $10.48 billion. Handset chip sales fell 26% to $5.14 billion as rising memory costs pushed up phone prices and hurt demand, though the company said it is seeing sequential growth. Automotive revenue soared 89% to $1.99 billion, IoT revenue rose 4% to $1.88 billion, and QTL licensing revenue dropped 7% to $1.3 billion. Qualcomm expects $5 billion in data center revenue in fiscal 2027, up from $650 million this quarter, and CEO Cristiano Amon said the constraint is supply, not demand.
- Arm Stock Has Crashed 37%. Is It a Better Buy Than Qualcomm?
Arm shares fell 36.84% over the past month to $194.22, while Qualcomm traded at $167.07 and pays a quarterly dividend. The article says Qualcomm is far cheaper, at about 32 times earnings and a 7.30% free cash flow yield, versus about 239 times and 0.45% for Arm. Qualcomm yields about 2.17%, while Arm pays no dividend. Arm's fiscal Q1 2027 revenue rose 22% to $1.29 billion, whereas Qualcomm's fiscal Q3 revenue fell 4.0% to $9.95 billion as handset revenue dropped 20%, though automotive grew 61%. The article concludes Qualcomm fits a retiree's profile better, while Arm suits investors decades from retirement who can tolerate large declines.
Related markets
Latest news
- Why an equal-weight S&P 500 fund can reduce Big Tech risk
Big Tech companies dominate traditional S&P 500 index funds. Investment expert Dryden Pence explains how equal weighting can help investors diversify their portfolios.
- Dow Jones Futures Rise After Apple, Microsoft, Amazon Flash Buy Signals In Postelection Rally. CoreWeave, SpaceX Skid.
Election results and sharply falling oil prices sparked a stock market rally. Stocks across many sectors flashed buy signals, but the article points to one area to avoid.
- Why Bitcoin's Next Soft Fork Could Feel Like a Practice Run
Longtime Bitcoin developer Matt Corallo, co-author of BIP-54, puts an 80% chance on the “Great Consensus Cleanup,” first proposed in 2019, becoming Bitcoin's next soft fork. The upgrade aims to fix four long-standing vulnerabilities in the consensus rules: poison blocks, time warp bugs, Merkle malleability and duplicate coinbase transactions. LayerTwo Labs' Paul Sztorc calls it maintenance work that adds no new functionality, while a TABconf developer survey points to September 2027 as the earliest expected timing, with most pointing to 2028 or later. Corallo argues BIP-54 could also serve as a deployment playbook for future soft forks, since previous upgrades involved considerable debate over activation mechanisms.
- This year’s worst-performing S&P 500 stock is finally seeing some major relief
AppLovin's stock is jumping after earnings results described as “clearly positive.”
- Why Opendoor Stock Jumped 13.8% Today
Opendoor Technologies (OPEN) stock rose 13.8% on Nov. 4, 2026, as housing stocks rallied after Democrats won both chambers of Congress in the midterms. The S&P 500 gained 1.7% and the Nasdaq Composite 1.5%. Democrats named housing affordability a major policy priority, and oil prices fell as investors hoped for a quicker end to the Iran war, a move that could help cool inflation and lower long-term Treasury yields, which the 10-year yield did that day. Opendoor is rate-sensitive: lower yields reduce mortgage rates and boost home sales, while its large financed inventory means higher rates raise interest costs. It reports Q3 results after the close on Thursday, with Wall Street expecting sales growth of about 17%.
- Why AI investors may need Nvidia and application stocks
Baron Capital portfolio manager Ashim Mehra explains why his AI strategy spans semiconductor leaders, smaller companies, and businesses that are putting AI into their products.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.