Qualcomm Plunges 7.5%—What's Fueling This Sudden Selloff?

Summary
• Qualcomm (QCOM) tumbles 7.48% intraday, breaking below $147 after reporting mixed Q3 results
• JPMorgan warns of 'single-digit' revenue growth post-Apple modem transition
• Semiconductors sector volatile as AMD declines 1.49%

Qualcomm's sharp intraday drop reflects investor anxiety over its long-term revenue trajectory. With Apple's in-house modem transition looming and JPMorgan's tempered outlook, the stock has tested key support levels. The semiconductor sector remains under pressure as geopolitical tensions and AI demand dynamics reshape the landscape.

Earnings Miss and Apple Transition Spark Sell-Off
Qualcomm's $10.37 billion revenue beat expectations but fell short of the $10.42 billion consensus, triggering immediate profit-taking. The $2.77 adjusted EPS result, while exceeding estimates, failed to offset concerns about its $10.3-$11.1 billion Q4 guidance. JPMorgan's downgrade to 'single-digit growth' for FY26-27—despite maintaining an 'overweight' rating—highlighted structural risks from Apple's departure. Analysts now question Qualcomm's ability to offset lost smartphone revenue with emerging IoT and automotive segments, particularly as Samsung and TSMC face their own sector-wide headwinds.

Semiconductor Sector Volatile as AMD Leads Mixed Results
The broader semiconductor sector remains in flux as Advanced Micro Devices (AMD) declines 1.49% amid mixed AI demand signals. While TSMC raises 2025 sales forecasts and Intel faces foundry challenges, Qualcomm's IoT and automotive growth segments lag behind competitors' AI-driven momentum. Sector-wide pressures from U.S.-China trade dynamics and AI infrastructure overbuilding create a fragmented risk profile, with QCOM's 7.5% drop reflecting both company-specific and macro-level uncertainties.

Options and ETF Plays for a Volatile QCOM Move
• MACD: 1.297 (bullish divergence), RSI: 49.9 (neutral), Bollinger Bands: 145.57–156.79 (breach of lower band)
• 200-day MA: 157.67 (below current price), 30-day MA: 157.46 (resistance zone)
• Key support: $145.57 (Bollinger low), $140 (psychological level)

The Direxion Daily QCOM Bull 2X ETF (QCMU) plummets 15.18%, amplifying QCOM's 7.5% move. For short-term positioning, consider QCOM20250808P145 (put) and QCOM20250808P144 (put), both showing strong leverage ratios and liquidity. Under a 5% downside scenario (ST = $139.81):

• QCOM20250808P145: Payoff = $5.19 (max(0, 145-139.81))
• QCOM20250808P144: Payoff = $4.19 (max(0, 144-139.81))

QCOM20250808P145
• Code: QCOM20250808P145
• Type: Put
• Strike: $145
• Expiry: 2025-08-08
• IV: 31.34% (moderate)
• Leverage: 77.85% (high)
• Delta: -0.368951 (moderate sensitivity)
• Theta: -0.008438 (low time decay)
• Gamma: 0.052069 (high responsiveness)
• Turnover: 721,399 (liquid)
• Positional advantage: Strong leverage and gamma for directional bets

QCOM20250808P144
• Code: QCOM20250808P144
• Type: Put
• Strike: $144
• Expiry: 2025-08-08
• IV: 31.84% (moderate)
• Leverage: 93.72% (high)
• Delta: -0.319691 (moderate sensitivity)
• Theta: -0.022239 (moderate decay)
• Gamma: 0.048574 (responsiveness)
• Turnover: 28,066 (liquid)
• Positional advantage: Balanced risk-reward profile for bearish play

Aggressive short-sellers may consider QCOM20250808P145 into a breakdown below $145, while QCOM20250808P144 offers tighter risk management for a $144 pivot.

Backtest Qualcomm Stock Performance
The backtest of Qualcomm (QCOM) after a -7% intraday plunge shows favorable performance short-term, with 55.16% of days experiencing a positive return within three days and 52.97% of days within ten days. The maximum return following the plunge was 3.67% over 30 days, indicating a strong recovery potential.

Act Fast—QCOM Faces Crucial Support Test
Qualcomm's intraday selloff reflects a confluence of near-term execution risks and long-term structural headwinds. With JPMorgan's growth caution and the sector's fragmented momentum, the $140 level becomes critical for near-term stability. Investors should monitor AMD's -1.49% move as a sector barometer while tracking QCOM's 200-day MA at $157.67 for potential reversal cues. For immediate action, focus on the $145–144 support cluster and consider the leveraged QCMU ETF as a proxy for directional bets. Watch for the 140 support breakdown or regulatory clarity on China AI chip exports to determine next steps.