What Happens To Qualcomm Stock If The New Revenue Earns Less? - Yahoo Finance

Qualcomm's stock has dropped 32% over the past three months, primarily due to a contracting smartphone market and Apple's early exit from the company's supply chain. While management has a credible pl... Read original →

Qualcomm's core vulnerability stems from the dual impact of a contracting smartphone market and Apple's strategic shift. Its traditional QCT revenue is plummeting, especially after Apple moved to in-house chip development, with handset revenue expected to drop from $5.1 billion in Q3 2026 to $250 million in Q4. While the company is pivoting toward data center and automotive segments, these new revenue streams carry lower gross margins, potentially diluting overall profitability. Although BMW’s ADAS and digital cockpit silicon contract is promising, the fast-paced technological evolution and high R&D costs in automotive chips limit near-term scale. Data center chips, while growing, face intense competition and pricing pressure, further constraining margins. Technologically, although 3nm EUV improves performance, cost and yield issues hinder rapid market adoption. Geopolitical dynamics, particularly the U.S.-China tech decoupling, are increasing compliance costs and supply chain risks, especially in Taiwan, China and Hong Kong, China. Competitors like NVIDIA, Qualcomm, and MediaTek are aggressively expanding in AI and automotive semiconductors, intensifying market competition. Over the next 12–24 months, without significant breakthroughs or new orders, Qualcomm’s profitability and stock performance will remain under pressure.