What Happened?
Shares of wireless chipmaker Qualcomm (NASDAQ:QCOM) fell 8.1% in the afternoon session after the company reported mixed second-quarter 2025 results as concerns lingered due to rising inventories and a revenue forecast that slightly trailed analysts' estimates. Sales rose 17% driven by strength across automotive and IoT segments, while handset revenue grew at a slower 12% clip, signaling modest momentum in core mobile markets.
For the next quarter, the company expects EPS to grow again, but revenue guidance came in just below what the Street had been projecting, suggesting some caution as mobile markets remain lumpy. Also, inventory remained slightly elevated. Overall, this was a challenging quarter.
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What The Market Is Telling Us
Qualcomm’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 10% on the news that the company reported first quarter results that exceeded analysts' EPS expectations. Next quarter's revenue guidance came in higher than Wall Street's estimates.
On the other hand, its inventory levels increased. Overall, this quarter's results seemed fairly positive and shareholders should feel optimistic.
Qualcomm is down 10.9% since the beginning of the year, and at $136.93 per share, it is trading 39.7% below its 52-week high of $227.09 from June 2024. Investors who bought $1,000 worth of Qualcomm’s shares 5 years ago would now be looking at an investment worth $1,810.
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