Qualcomm slumps early as investors hang up on mobile phone chipmaker - Seeking Alpha

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Qualcomm (NASDAQ:QCOM) shares gave up arsenic overmuch arsenic 8% successful pre-market trading Thursday arsenic Wall Street showed its disappointment with the communications chipmaker's outlook and comments astir rising merchandise inventories.

Late Wednesday, Qualcomm (QCOM) said it believes it volition gain $2.25 to $2.45 a share, excluding one-time items, connected gross successful a scope of $9.2B to $10B for its fiscal archetypal 4th that ends successful December. The institution said its concern was being impacted by factors specified arsenic "the accelerated deterioration successful request and easing of proviso constraints crossed the semiconductor industry" that are resulting successful rising merchandise inventory levels.

As such, Qualcomm (QCOM) said it expects its mobile-phone handset concern to autumn In "a debased double-digit percent range" this twelvemonth from past year. The institution had earlier forecast a "mid-single-digit percent decline" from 2021.

A imaginable agleam spot for Qualcomm (QCOM) could travel from Apple (AAPL), arsenic Qualcomm said it expects to person "the immense bulk of share" of 5G modems for the adjacent iPhone enactment that comes retired successful 2023. Qualcomm (QCOM) had earlier said it expected to person astir a 20% of the iPhone's modem concern arsenic the institution is moving to diversify into different areas specified arsenic semiconductors for autos and self-driving technology.

Along with its outlook, Qualcomm (QCOM) besides reported fourth-quarter results that included income conscionable exceeding analysts' forecasts.