Qualcomm (QCOM) shares plummeted 7.55% in Thursday's intraday trading session, as investors reacted negatively to the company's fiscal third-quarter earnings report and forward guidance. Despite beating analyst expectations for Q3, with adjusted earnings per share of $2.77 surpassing estimates of $2.71, the chipmaker's outlook for the fourth quarter fell short of Wall Street projections.

The sharp decline in Qualcomm's stock price can be attributed to several factors. First, the company's Q4 guidance disappointed investors, with projected adjusted EPS between $2.75 and $2.95 on revenue of $10.3 billion to $11.1 billion, below analyst consensus. Second, Qualcomm reiterated its warning about Apple's shift to in-house modem chips for future devices, which is expected to significantly impact Qualcomm's chip segment revenue. This looming loss of Apple as its biggest modem customer has heightened concerns about the company's future growth prospects.

Additionally, Qualcomm missed revenue expectations in its handsets and automotive segments, with handset revenue coming in at $6.3 billion against an expected $6.4 billion, and automotive revenue at $984 million versus the anticipated $1 billion. These misses, coupled with broader industry concerns about chip growth sustainability, have contributed to the negative sentiment surrounding Qualcomm's stock. Furthermore, renewed tariff threats on semiconductors by U.S. President Donald Trump have emerged as a potential risk, raising concerns about disruptions to supply chains and impacts on Qualcomm's handset revenue. The combination of these factors has led to a significant sell-off in Qualcomm shares, reflecting investor uncertainty about the company's near-term outlook and long-term growth strategy.