Qualcomm Shares Drop 6% Amid Tariff Fears, Weak Forecast

Qualcomm reported better-than-expected second quarter revenue, but issued a cautious outlook for the upcoming quarter, citing uncertainty around tariffs and slowing global smartphone demand. While the company’s chips remain excluded from current U.S.-China tariffs, executives expressed concern that escalating trade tensions and macroeconomic headwinds could negatively impact future sales, especially since China is Qualcomm’s largest market. The forecasted revenue midpoint for the next quarter was just below analyst expectations, leading to a decline in the company’s stock price. Analysts noted Qualcomm’s exposure to smartphone, IoT, and automotive markets makes it vulnerable to trade disruptions. Despite these challenges, Qualcomm’s leadership emphasized a focus on technology development, product portfolio, and operational efficiencies to navigate the uncertain environment.