Qualcomm (NASDAQ:QCOM) slides 8.2% after reporting fiscal Q2 results and guidance inline with estimatesyet the sell-off still caught Wall Street off guard.
Shares tumbled more than 5.5% in premarket trade before ending the day down 8.24%, despite Qualcomm delivering flat handset chip shipments, modestly higher IoT sales and growing nicely automotive revenue, according to Morgan Stanley's Joseph Moore.
The company said it expects to power about 70% of the next iPhone, below Moore's 78% forecast, though management described tariff impacts as moderate and saw no major pull?in orders. Qualcomm maintained its full?year outlook for low? to mid-single-digit revenue growth and core operating margins north of 50%, keeping guidance largely unchanged.
The sharp decline surprised analysts who see value in Qualcomm's mix of 5G baseband chips, RF front-end modules and edge-AI processors. Moorewho sits on an Equal-Weight rating with a $163 price targetnoted that semiconductor outlooks rarely surprise, yet admitted there was nothing to pick on in Qualcomm's update.
By contrast, Wells Fargo's Aaron Rakers kept his Underweight rating, cutting his price target to $140 from $175 on materializing Apple losses and China exposure concerns. Both analysts will be closely watching June quarter bookings and any shifts in the Apple share forecast.
Qualcomm's valuation, trading at roughly 12x forward EPS, now looks more compelling, but investors must weigh near-term handset risk against long-term 5G and automotive growth opportunities.
Traders will zero in on Qualcomm's analyst day in mid-June for fresh color on product roadmaps, customer mix and tariff-related supply-chain dynamics.
This article first appeared on GuruFocus.免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。