What happened?
Shares of wireless chipmaker Qualcomm (NASDAQ: QCOM) fell 8.3% in the morning session after the company reported third-quarter 2026 results and issued fourth-quarter profit guidance that fell short of expectations amid broad-based input cost inflation across wafers, packaging, and memory.
While the revenue midpoint came in above Wall Street estimates of $10.52 billion, the earnings outlook trailed consensus expectations of $2.29 per share. Qualcomm was facing broad-based input cost inflation across wafers, packaging, and memory.
Adding to the pressure, Democratic victories in the U.S. midterm elections continued to fuel investor concerns that tighter regulatory scrutiny will slow data-center expansion, CNBC reported.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Qualcomm? Access our full analysis report here, it’s free.
What is the market telling us
Qualcomm’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 12% on the news that automaker Stellantis announced an expansion of its multi-year technology collaboration with the company.
The expanded deal will integrate Qualcomm's Snapdragon Digital Chassis and Snapdragon Ride Pilot platforms across millions of Stellantis' future vehicles. These systems are designed to power features like advanced driver assistance, in-car cockpit functions, and connectivity.
The partnership strengthens Qualcomm's move to diversify beyond smartphones and boosts its automotive business, which now has an annual revenue of over $5 billion. Following the news, Melius Research raised its price target on Qualcomm stock to $220 from $170, reflecting increased confidence in the company's growth prospects within the automotive sector.
Qualcomm is down 11.9% since the beginning of the year, and at $152.43 per share, it is trading 39.3% below its 52-week high of $251.02 from May 2026. Investors who bought $1,000 worth of Qualcomm’s shares 5 years ago would now be looking at only $934.31.
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