Qualcomm Inc (QCOM)

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Chipmakers Tumble Amid ‘High Bar’ for Qualcomm’s Earnings
By: Bloomberg | February 3, 2022

Semiconductor stocks fell in U.S premarket trading, with Qualcomm Inc. slumping even after the biggest maker of smartphone chips reported earnings and forecasts that beat estimates.

Qualcomm fell short of projections in certain categories, including chips for cars, the Internet of Things and radio-frequency components. Supply woes also hampered its ability to take advantage of booming demand for phones.

“The numbers/guide are both pretty solid and there’s not much to complain about,” wrote Vital Knowledge analysts, who cited recent gains in the stock as a possible factor behind the negative reaction to the report. Such a rally “makes for a high bar.”

Qualcomm shares have surged 46% since the end of October amid positivity over its android business, though recent worries over rising interest rates have hit growth sectors, including semiconductors. The shares had risen for four straight trading days ahead of the earnings report, jumping nearly 17% in that timespan.

Cowen analyst Matthew D Ramsay said that while Qualcomm’s beat and raise was “significant,” the results contained “a couple of nit-picks” with guidance for a below-seasonal June quarter potentially curbing enthusiasm.

Among other semiconductor names, Nvidia Corp. fell 3.3% in premarket trading and Advanced Micro Devices Inc. slid 2.2%. Micron Technology Inc fell 2.1% and Intel Corp. declined 0.9%. Qorvo Inc. shares sank 6.7% in after-hours trading on Wednesday after its own results and forecast.

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