New York, Jan 20, 2026, 12:55 EST — Regular session.
- Qualcomm shares slipped roughly 2.4% by midday, underperforming the wider chip sector.
- Tech stocks took a hit as fresh U.S. tariff threats on Europe sparked a global risk-off reaction.
- Attention shifts to Qualcomm’s early-February earnings for clues on demand and future guidance.
Shares of Qualcomm (QCOM.O) dropped 2.4% to $155.63 during midday trading Tuesday, adding to the sell-off in chip stocks amid fresh concerns over tariffs. Investors continued to offload riskier assets.
This matters as Qualcomm approaches its earnings report in early February, with worries mounting over smartphone demand and its reliance on a few key customers. The stock’s drop is also putting to the test how much investors value chipmakers tied closely to handsets, even as they push new growth areas.
Tuesday’s drop didn’t seem tied to any single company. Instead, it reflected macro headlines and a widespread tech sell-off, with chip stocks bearing the heaviest losses.
The iShares Semiconductor ETF dropped 0.6%. Broadcom plunged 4.7%, Nvidia slipped 3.5%, but AMD climbed 1.7%, and Intel jumped 5.4%.
Wall Street’s major indexes dipped after U.S. President Donald Trump warned of new tariffs on several European nations if the U.S. isn’t permitted to purchase Greenland. “We think we’ll settle down and realize this is just a negotiation tool,” said Jeff Buchbinder, chief equity strategist at LPL Financial. 1
Volatility surged. The Cboe Volatility Index, tracking S&P 500 options and known as Wall Street’s “fear gauge,” climbed to its highest level in eight weeks. Alex Morris, CEO and CIO of F/m Investments, summed up the mood: investors are “taking equity risk off the table, buying gold, buying cash.” 2
Qualcomm is pushing to expand beyond smartphones, focusing on autos and connected gadgets. Volkswagen announced this month a long-term supply agreement with Qualcomm for infotainment chips tied to a new software platform launching in 2027. 3
That said, concerns around handsets continue to weigh on the stock. Earlier this month, Mizuho downgraded Qualcomm, citing fears about Apple’s longer-term modem strategy and a weaker smartphone market, according to Barron’s. 4
Separately, an SEC filing last week revealed that board member Christopher D. Young plans to step down at Qualcomm’s 2026 annual meeting. The move comes as he takes on the CEO role at Vertex, Inc., which demands more of his time 5 .
The next move hinges on what unfolds next. Should tariff threats solidify into actual policy and Europe retaliate, consumer confidence could take a hit. That might drag down demand for consumer electronics and chip orders, putting Qualcomm in a tough spot as it prepares to set guidance for the upcoming quarter.
Traders are eyeing the emergency EU summit in Brussels on Thursday for any reaction from leaders. Qualcomm’s Q1 fiscal 2026 earnings call on Feb. 4 is also on their radar. 6
