Qualcomm Drops 3.85% as Chinese EV Market Shifts

On April 3, 2025, Qualcomm's stock dropped by 3.85% in pre-market trading.

Qualcomm is facing significant pressure in the Chinese electric vehicle market, where domestic manufacturers are increasingly opting for locally produced chips. This shift is driven by the growing demand for smart cockpit and autonomous driving chips, which are essential for electric vehicles but less so for traditional gasoline cars. Chinese manufacturers have made substantial inroads, capturing a significant market share previously dominated by Qualcomm and NVIDIA. This trend has led Qualcomm to consider price reductions to remain competitive in the Chinese market.

In addition to the challenges in the electric vehicle sector, Qualcomm is also exploring strategic acquisitions to bolster its position in the data center and AI chip markets. The company is reportedly considering acquiring Alphawave IP Group, a leading provider of high-speed data connection solutions. This move aligns with Qualcomm's strategy to enhance its capabilities in data center and AI technologies, areas where it has been relatively weak compared to its dominance in mobile communication chips. The potential acquisition of Alphawave, known for its advanced SerDes technology, could significantly strengthen Qualcomm's competitive edge in these growing markets.