Qualcomm Stock Drops 2% on Downgrade, Chip Concerns
Qualcomm's stock price dropped by over 2% on Thursday, following an analyst's recommendation downgrade and concerns about new chip announcements. The company recently entered the PC market with the launch of the Snapdragon X2 chips.
The fall in Qualcomm's share price was attributed to profit-taking, worries about the newly announced chips, and an analyst recommendation downgrade. An analyst from Aletheia Capital, Angus Lin, downgraded Qualcomm's recommendation from 'buy' to 'hold' before market open on Thursday. Despite the Snapdragon X2 chips being faster and more efficient than competitors, offering high performance in gaming and creative applications, the analyst believes that Qualcomm's growth in auto and internet-of-things segments may not be enough to improve the company's position within the forecast horizon. Additionally, the analyst noted that increasing wafer costs could negatively impact Qualcomm's fundamentals.
Qualcomm's underperformance in the mobile segment and potential losses of key businesses with major clients like Apple and Samsung were also cited as concerns. The analyst's recommendation downgrade has added to these worries, causing the stock price to decline.
Qualcomm's stock price fell by over 2% on Thursday due to profit-taking, concerns about newly announced chips, and an analyst recommendation downgrade. The company's entry into the PC market with the Snapdragon X2 chips has not been enough to alleviate investor concerns. Analysts' opinions, such as that from Angus Lin at Aletheia Capital, play a significant role in shaping market sentiment, and investors will be watching for further developments in Qualcomm's performance and recommendations.
