What Happened?
Shares of wireless chipmaker Qualcomm (NASDAQ: QCOM) fell 7.8% in the afternoon session after the company issued disappointing revenue and profit guidance for its upcoming quarter, overshadowing an otherwise solid earnings report.
For its fourth quarter of calendar year 2025, Qualcomm's revenue of $12.25 billion met analyst expectations, and its adjusted earnings per share of $3.50 came in ahead of estimates. However, the company's forecast for the first quarter of 2026 painted a weaker picture. Qualcomm guided for revenue of $10.6 billion, missing the consensus estimate of $11.15 billion. Similarly, its projected adjusted earnings per share of $2.55 fell short of the $2.87 analysts had anticipated. This weaker-than-expected outlook signaled potential demand challenges ahead, prompting concern among investors about the company's near-term growth prospects.
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What Is The Market Telling Us
Qualcomm’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock dropped 3.5% on the news that rising geopolitical tensions between the US and Europe over control of Greenland sparked a broad, risk-off mood in asset markets.
The sell-off was fueled by President Trump's push for the U.S. to acquire Greenland, reviving fears of trade confrontations and new tariffs against European allies. The tech-heavy Nasdaq index saw significant declines, with the "Magnificent Seven" technology stocks, Nvidia, Apple, Alphabet, Amazon, Meta, Microsoft, and Tesla, all sliding to start the week. This widespread downturn among major tech players weighed heavily on the overall market as investors reacted to the escalating political rhetoric.
Qualcomm is down 21.3% since the beginning of the year, and at $136.11 per share, it is trading 27.5% below its 52-week high of $187.68 from October 2025. Investors who bought $1,000 worth of Qualcomm’s shares 5 years ago would now be looking at an investment worth $933.31.
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