Qualcomms 7 73 Drop on 3 64B Volume Ranks 23rd as Apple Shift and Tariff Fears Weigh

Qualcomm (QCOM) shares fell 7.73% on July 31, with a trading volume of $3.64 billion, ranking 23rd in the market. The decline reflects investor concerns over Apple’s transition to in-house modems and potential U.S. semiconductor tariffs. The chipmaker warned that Apple’s shift, starting with the iPhone 16e, will reduce future chip revenue. Additionally, renewed tariff threats from President Trump have raised fears of disrupted supply chains and reduced handset revenue.

Qualcomm emphasized growth in data centers and augmented reality (AR) as offsetting strategies. CEO Cristiano Amon highlighted 19 AR designs, including META’s smart glasses, and expanding partnerships with Samsung and Xiaomi. Despite a 19% rise in adjusted earnings per share and 15% growth in non-Apple chip sales, the stock faced pressure from sector-specific risks. CFO Akash Palkhiwala noted limited immediate impact from tariff concerns, as customers have not yet accelerated orders.

Analysts highlighted mixed signals for the stock. While Qualcomm’s forward price-to-earnings ratio of 13.36 trails peers like Nvidia and AMD, its focus on premium Android devices and 5G technology remains a key support. However, reliance on smartphone markets and geopolitical uncertainties, including China’s role in 5G adoption, pose ongoing challenges. The company’s ability to diversify into AI-driven infrastructure and AR could determine its long-term resilience amid shifting dynamics.

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