QCOM
QCOM Stock Drops 2% Qualcomm Reportedly Plans Chip Price Hikes Amid Rising Supply Costs
Article Summary
SELL- Qualcomm Inc. (NASDAQ: QCOM) dropped 2% on Friday after informing clients it will raise chip prices by double-digit percentages starting late this summer, citing unavoidable cost pressures across its global supply network.
- Qualcomm, stated it has fully exhausted its ability to absorb escalating supplier costs and could not find sufficient alternative vendors, having reached a tipping point after absorbing rising supplier costs for as long as it could and failing to sufficiently reduce expenses by sourcing alternative components from new vendors, Bloomberg reported.
- High demand for AI data center infrastructure infrastructure is cannibalizing component manufacturing capacity, constraining supply across all tech sectors, with manufacturers reallocating production lines toward lucrative AI hardware leaving even basic silicon parts difficult to procure and far more expensive.
- Analysts have a 12-month price target of $221.23, with Koyfin data showing near 32% upside from Thursday's close, while retail sentiment on Stocktwits was 'bearish' with 'low' message volumes.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 5.2% | 25% | 35.0 ptsBelow Screener (5.2%) - Weak growth |
| EPS Growth Next 5Y ? | 3.9% | 25% | 10.0 ptsVery Weak (3.9%) - Minimal expectations |
| Target Price Upside ? | 36.9% | 20% | 85.0 ptsLarge Upside (36.9%) - Target: $228.57 vs Current: $166.97 |
| Gross Margin % ? | 54.8% | 15% | 80.0 ptsVery Healthy (54.8%) - High-quality margins |
| Drawdown from 52-Wk High ? | -35.8% | 15% | 80.0 ptsSolid Dip (-35.8%) - Good entry zone |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About QCOM
- QUALCOMM Incorporated engages in the development and commercialization of foundational technologies for the wireless industry worldwide.
- It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
- The QCT segment develops and supplies integrated circuits and system software with connectivity and computing technologies for use in mobile devices; automotive systems for connectivity, digital cockpit, and ADAS/AD; and IoT, including consumer electronic devices, industrial devices, and edge networking products.
- The QTL segment grants licenses or provides rights to use portions of its intellectual property portfolio, which include various patent rights useful in the manufacture and sale of wireless products comprising products implementing LTE, and/or OFDMA-based 5G products and derivatives; to use cellular standard-essential patents, including 3G, 4G and 5G for cellular devices.
- The QSI segment invests in early-stage companies in various industries, including 5G, artificial intelligence, automotive, consumer, enterprise, cloud, IoT, and extended reality, and investments, including non-marketable equity securities and, to a lesser extent, marketable equity securities, and convertible debt instruments.
- It also provides development, and other services and sells related products to the United States government agencies and their contractors.
- In addition, the company is also involved in Qualcomm government technologies and data center businesses.
- Further, it provides security and intelligence services for unmanaged networks through software-based network security solutions.
- QUALCOMM Incorporated was incorporated in 1985 and is headquartered in San Diego, California.