What Happened?
Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) fell 3.4% in the afternoon session after Mizuho Securities downgraded the company to Neutral from Outperform, citing challenges in the handset business.
The investment firm also lowered its price target on the stock to $175 from $200. The decision was driven by concerns over anticipated market share losses with key customer Apple, which is reportedly developing its own modems. This potential loss of business created what the analyst called "handset headwinds," raising worries about Qualcomm's future growth prospects.
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What Is The Market Telling Us
Qualcomm’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 3.3% on the news that a broader market rally drove investor optimism in artificial intelligence and big tech stocks.
The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year. Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.
Qualcomm is flat since the beginning of the year, and at $171.90 per share, it is trading close to its 52-week high of $187.68 from October 2025. Investors who bought $1,000 worth of Qualcomm’s shares 5 years ago would now be looking at an investment worth $1,113.
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