New York, Jan 13, 2026, 12:19 (EST) — Regular session
- Qualcomm shares dropped roughly 1.5% in midday trading, underperforming the wider chip sector rally.
- Mizuho’s downgrade, pointing to handset “headwinds” and Apple modem exposure, continues to weigh on the stock.
- Traders are eyeing Qualcomm’s Feb. 4 earnings call to get a clearer picture of demand and customer mix for 2026.
Qualcomm shares slipped roughly 1.5% to $166.80 on Tuesday, lagging behind the broader semiconductor sector as chip-focused ETFs edged up.
The broader market held steady following new U.S. inflation figures, with the S&P 500 tracker nearly flat and the Nasdaq-100 fund ticking up slightly. The Labor Department reported that consumer prices in December increased 2.7% year-over-year, while core inflation, excluding food and energy, came in at 2.6%.
For Qualcomm, interest rates matter — but handset demand matters more. Investors are grappling with how much pricing power and volume the company can maintain in 2026, as major customers tighten supply chains and consumers delay upgrades.
The pressure ramped up after Mizuho analyst Vijay Rakesh downgraded Qualcomm to Hold from Buy, cutting his price target to $175 from $200. He cited “handset headwinds” and weaker iPhone-related content as key concerns. “For QCOM, we believe the lower exposure to market leader Apple remains a key headwind for 2026E and beyond,” Rakesh said, also trimming his revenue and EPS forecasts. TipRanks
The warning tapped into a persistent concern: Apple’s push to handle more modem production internally, potentially cutting into Qualcomm’s chip sales for upcoming iPhones. Qualcomm has flagged to investors that this Apple shift might dampen growth, even if smartphone demand steadies.
Qualcomm is stepping up its efforts beyond smartphones, targeting the automotive sector. Earlier this month, Volkswagen announced plans for a long-term supply agreement to incorporate Qualcomm’s system-on-chips — which integrate several computing tasks — into infotainment systems on a new software platform set to launch in 2027.
On the supply front, Qualcomm’s CEO Cristiano Amon revealed the company is in discussions with Samsung Electronics over contract manufacturing with a 2-nanometre process. This “foundry” deal would have Qualcomm outsourcing chip production to Samsung. Reuters
The wider chip sector held steady Tuesday. Intel and AMD surged following KeyBanc’s upgrades, sparking a risk-on vibe in parts of the industry that Qualcomm didn’t catch.
Qualcomm’s downside risk remains clear: weaker handset sales, a faster-than-anticipated drop in Apple-related content, and diversification failing to make up the shortfall in time. If pricing pressure emerges as a tool to protect market share, margins could take a serious hit.
Macro factors could still shake the sector in the short term. The upcoming U.S. producer-price report, set for Wednesday, will put rate expectations back under the microscope.
Qualcomm’s upcoming key event is its fiscal first-quarter earnings call on Feb. 4. Investors will focus on any updates about handset demand, insights into Apple modem schedules, and whether growth in automotive and IoT sectors is gaining enough traction to support the stock.
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