Qualcomm stock tumbles while chip ETFs rise — Apple modem fears return before CPI, earnings

12 January 2026

New York, January 12, 2026, 12:39 EST — Regular session

Qualcomm shares dip roughly 3.5% at midday, underperforming chip ETFs
Mizuho’s downgrade sharpens concerns over handset demand and the risk to Apple’s modem market share
Investors are gearing up for the U.S. CPI report on Tuesday and Qualcomm’s earnings release on Feb. 4

QUALCOMM Incorporated shares slipped roughly 3.5% to $171.64 by midday Monday, hitting a low of $171.24 earlier. Meanwhile, the Nasdaq 100 tracker QQQ edged up 0.1%, and the iShares Semiconductor ETF rose 0.4%.

The market mood has been mixed following threats from the Trump administration to indict Federal Reserve Chair Jerome Powell, raising fresh doubts about the Fed’s independence. Morgan Stanley analysts described the start of 2026 as a “cacophony of market-moving events.” Reuters

Qualcomm’s share price has fallen more steeply than the rest of the sector, as investors digest a bearish note from Mizuho on smartphones and Apple modem exposure. Analyst Vijay Rakesh downgraded QCOM to Neutral, citing handset headwinds and a loss of Apple market share in fiscal 2026/27. He warned of a possible $2 billion to $3 billion revenue hit if iPhone sales decline and Qualcomm’s modem share shrinks. Mizuho also pointed out that handsets account for over 70% of Qualcomm’s chip-unit sales.

The San Diego-based firm markets smartphone processors and modem chips while earning licensing fees from its cellular patents.

Automotive and internet-of-things chips are driving growth, while Qualcomm has been expanding into PCs and data centers. Yet, investors remain focused on the handset cycle as the key swing factor.

The macro calendar adds pressure: U.S. consumer price data drops Tuesday, alongside the start of big-bank earnings. Taiwan Semiconductor will follow with its report later in the week.

Qualcomm’s fiscal first-quarter earnings hit the tape on Feb. 4, with the conference call scheduled for 1:45 p.m. PT, according to its investor site. The key focus: any signs of shifting handset demand, updates on licensing, and fresh comments on Apple’s modem business.

But that scenario can reverse quickly. A softer inflation report might relieve some strain on rate-sensitive tech stocks, though another downgrade in smartphone forecasts would probably leave Qualcomm vulnerable.

Qualcomm is currently serving as a gauge for how harshly the market hits chipmakers tied to smartphones, even when the broader semiconductor sector remains steady. The immediate checkpoints to watch are Tuesday’s CPI data and, for Qualcomm investors, the Feb. 4 earnings report.

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Khadija Saeed is a financial markets reporter at TS2.tech. Her coverage ranges from stocks and technology to emerging industries and developments across global markets. She studied economics and finance at the London School of Economics and worked in market research before becoming a financial journalist. Follow Khadija Saeed on Google News.

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