New York, January 12, 2026, 18:12 EST — After-hours trading
- Shares of Qualcomm dropped roughly 4.8% on Monday, lagging behind the broader market which saw a modest uptick.
- Mizuho lowered its rating and slashed its price target, pointing to challenges from handsets and iPhone-related issues
- Investors are turning to early-February earnings reports for clues on phone sales, Apple’s market impact, and diversification strategies
Qualcomm Incorporated shares dropped 4.8% on Monday, slipping to $169.27 in after-hours trading. The decline followed a downgrade by Mizuho, which also lowered its price target. The broker cut its estimates by up to 7%, citing expected challenges for Qualcomm’s handset shipments and its “iPhone content” — the components it supplies for Apple’s phones — in 2026. TipRanks
The timing is rough, with the market once again treating handset exposure like a hot potato. A single negative update can still send shares tumbling, despite growing investor chatter around chips for servers, cars, and PCs.
This comes as traders wrestle with which chipmakers depend on a consumer upgrade cycle versus corporate spending. Qualcomm’s earnings report in early February is the next key date, and expectations usually climb when a stock stays close to recent highs.
Mizuho highlighted “handset headwinds” and flagged the potential for share loss at Apple, which is developing its own modem technology, according to a market note released Monday. The Apple risk has lingered for years but continues to trigger selling whenever it surfaces in forecasts. finviz.com
The decline was notable amid a mostly steady day. The S&P 500 rose 0.16% on Monday, whereas Broadcom jumped 2.1% and Qorvo slipped 1.6%, according to MarketWatch data.
The downside is straightforward: the phone market remains weak, and the biggest client continues to bring more work in-house. “For QCOM, we believe the lower exposure to market leader Apple remains a key headwind for 2026E and beyond,” Mizuho analyst Vijay Rakesh said, according to Barron’s. barrons.com
In 2023, Apple and Qualcomm struck a deal for Qualcomm to provide 5G chips through at least 2026. Still, investors are preparing for a gradual change as Apple aims to handle more of the modem technology in-house.
Qualcomm is ramping up efforts to expand beyond the smartphone market, zeroing in on the auto sector. Last week, Volkswagen announced a long-term supply agreement with Qualcomm for infotainment chips destined for “software-defined vehicles”—cars that rely on central computing systems and software updates. Deliveries are set to begin in 2027. reuters.com
Qualcomm’s November forecast for fiscal Q1 sales and adjusted profit came in above Wall Street expectations. CEO Cristiano Amon told Reuters the company is “planning for 75%” modem share in Samsung’s Galaxy S26. reuters.com
Qualcomm is set to release its fiscal first-quarter earnings and hold a conference call on Feb. 4 at 1:45 p.m. PT. Investors will be tuning in closely for updates on handset demand, shifts in customer mix, and the pace at which newer business segments might start contributing more.
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