{"id":34199,"date":"2023-05-04T13:54:30","date_gmt":"2023-05-04T13:54:30","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/qualcomm-amplifies-chip-gloom\/"},"modified":"2023-05-04T13:54:43","modified_gmt":"2023-05-04T13:54:43","slug":"qualcomm-amplifies-chip-gloom","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/qualcomm-amplifies-chip-gloom\/","title":{"rendered":"Qualcomm amplifies chip gloom with &#8216;sobering report&#8217;"},"content":{"rendered":"<p>(Reuters) -Qualcomm Inc&#8217;s shares sank 7% on Thursday after the chip designer signalled it would take longer for its crucial smartphone market to rebound from a post-pandemic slump.<\/p>\n<p>The company, which supplies to top handset makers Apple Inc and Samsung Electronics, was set to lose about $10 billion in market valuation, if the losses hold.<\/p>\n<p>Qualcomm&#8217;s quarterly revenue outlook marked the second time a chip firm underwhelmed Wall Street this week. Advanced Micro Devices slumped more than 9% on Wednesday after a dour forecast.<\/p>\n<p>&#8220;While we believe investors were expecting a miss, this was admittedly a somewhat sobering report,&#8221; said Bernstein analysts, among the 13 brokerages that cut price targets on Qualcomm&#8217;s stock.<\/p>\n<p>The company blamed the weakness on the timing of purchases by a customer that only buys its cellular modems and China, where an expected post-COVID recovery was yet to materialize.<\/p>\n<p>Qualcomm did not name the modem customer, but analysts pointed to Apple, which will report results after markets close.<\/p>\n<p>&#8220;The next two quarterly estimates will be adversely impacted by Apple as this leading modem-only customer purchased modems from Qualcomm in greater volumes earlier than normal due to the supply chain issues,&#8221; said Michael Walkley of Canaccord Genuity.<\/p>\n<p>China will remain a headache with no timeline for a recovery there, while competition is deepening from Taiwan&#8217;s MediaTek in the high-end smartphone chips, analysts said.<\/p>\n<p>&#8220;We worry about customers mixing lower now that wafers are no longer scarce as well as increasing competition from Mediatek at the higher end,&#8221; brokerage Evercore ISI said.<\/p>\n<p>Still, there were some encouraging signs for Qualcomm.<\/p>\n<p>Automotive revenue jumped 20% and the internet-of-things unit reported in line sales, indicating that Qualcomm&#8217;s efforts to diversify away from the smartphone market were on track.<\/p>\n<p> (Reporting by Aditya Soni; Editing by Sriraj Kalluvila)<\/p>\n<p><a href=\"https:\/\/lynettelockhart.com\/client\/qualcomm-amplifies-chip-gloom\/file-photo-the-logo-of-qualcomm-is-seen-during-the\/\"><img decoding=\"async\" src=\"https:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ430IG-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ430IG-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) -Qualcomm Inc&#8217;s shares sank 7% on Thursday after the chip designer signalled it would take longer for its crucial smartphone market to rebound from a post-pandemic slump. The company, which supplies to top handset makers Apple Inc and Samsung Electronics, was set to lose about $10 billion in market valuation, if the losses hold. [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":34200,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1220],"tags":[1223],"class_list":["post-34199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-technology","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportTechnologyNews\/tagreuters.com2023binary_LYNXMPEJ430IG-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=34199"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34199\/revisions"}],"predecessor-version":[{"id":34305,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34199\/revisions\/34305"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/34200"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=34199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=34199"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=34199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}