Results and Forecast Beat Analyst Consensus
Chip shares slumped in midday trade, with Qualcomm Inc. plunging even though that the largest telecommunication chipmaker announced results and projections that surpassed expectations.
“The numbers and benchmarks are very compelling, and there is nothing to be concerned about. “A rally like this raises the bar,” Vital Knowledge writes.
Chips for cars and the Internet of things do not meet the estimates
Some sectors, especially automotive chips, the Internet of Things, and RF components, failed to meet expectations, and supply concerns hindered the company from benefiting from the increased demand for smartphones.
Qualcomm’s stock dropped 3.3 percent at the closing of trade on Wednesday, following a 6 percent gain in the afternoon. The stock has surged for four trading days in a row, gaining about 17% during that time.
Nvidia Corp.’s stock dropped 2.7 percent, Advanced Micro Devices Inc.’s stock dropped 2%, Broadcom Corp.’s stock dropped less than 0.1 percent, and Qorvo Inc.’s stock dropped 6% after their own statistics and predictions.