Qualcomm's stock experienced a sharp decline of 5.02% during the intraday session on Thursday, underperforming the broader market as selling pressure intensified across the technology sector.

The downward movement was driven by a confluence of factors, primarily a broad sell-off in the semiconductor industry. This sector-wide pressure was exacerbated by a cautious outlook from analysts, with Citi placing Qualcomm on a downside catalyst watch list citing risks from weak smartphone sales growth. Concerns are mounting over a potential softening in consumer spending, which could dampen the smartphone upgrade cycle that is crucial for Qualcomm's core business.

Further contributing to the bearish sentiment are competitive threats, including the potential for major handset manufacturers to accelerate their transition toward in-house connectivity solutions, and ongoing geopolitical tensions that create regulatory uncertainty for firms with significant international exposure. The market is also exhibiting caution ahead of the company's upcoming fiscal third-quarter earnings report, leading to a defensive stance among investors.