Qualcomm Stock Drops 6% Amid Revenue Concerns

Qualcomm's stock declined after the company forecast third-quarter revenue slightly below Wall Street expectations, attributing this to weaker smartphone chip demand and ongoing macroeconomic and trade challenges, particularly U.S.-China tensions. Despite strong second-quarter results—reporting $10.98 billion in sales, a 17% increase year-over-year, and beating analyst estimates—investors reacted to the tepid outlook amid tariff uncertainties and global market pressures. CEO Cristiano Amon highlighted the company's continued focus on technology innovation, product diversification, and strong customer relationships to navigate these headwinds. Qualcomm's chips, largely exempt from current tariffs, are nevertheless affected by indirect impacts on demand, especially from China, which represents a significant portion of its sales. The company is actively diversifying beyond smartphones, expanding into automotive, IoT, and AI-powered PC chips to reduce dependency on any single market. Global smartphone shipments saw modest growth, with key clients like Apple accelerating supply chain adjustments in response to trade risks.