(Reuters) – Qualcomm shares fell 7% on Thursday after the chipmaker signaled it would take longer for the smartphone market to recover from a post-pandemic slump.
Such a performance made the company, supplier of Apple and Samsung Electronics, lose about 10 billion dollars in market value.
Qualcomm on Wednesday forecast revenue and profit below Wall Street estimates for the third quarter of the year.
“Although we believe investors were expecting a loss, this was admittedly a somewhat worrying report,” said analysts at Bernstein, among the 13 exchanges that lowered Qualcomm’s stock price targets.
The company blamed poor performance from a customer that only buys its cellular modems and China, where an expected post-pandemic recovery has yet to materialize.
Qualcomm did not name the named customer, but analysts pointed to Apple, which will report results after markets close.
“The next two quarterly estimates will be adversely impacted by Apple as this leading modem-only customer purchased from Qualcomm in higher volumes earlier than usual due to supply chain issues,” said Michael Walkley of Canaccord Genuity.
Automotive revenue jumped 20% and the internet of things (IoT) unit posted online sales, indicating that Qualcomm’s efforts to diversify beyond the smartphone market were on track.
(By Aditya Soni)
#Qualcomm #amplifies #chip #sector #pessimism #forecast #ISTOÉ #DINHEIRO