Qualcomm warns on costs, Apple revenue
Analysis based on 7 articles · First reported Jul 30, 2026 · Last updated Jul 30, 2026
Qualcomm's warning on higher costs and declining Apple revenue pressured its stock, falling 5% premarket, and led to multiple analyst price target cuts. The news highlights margin pressure in the semiconductor sector amid rising AI infrastructure costs, potentially affecting investor sentiment for chip stocks.
Qualcomm shares fell about 5% in premarket trading on July 30, 2026, after the chipmaker warned about higher memory costs and a steeper decline in Apple revenue, raising concerns about near-term profit growth. A surge in AI infrastructure spending has tightened semiconductor supply chains, driving up costs for memory, wafers, packaging, and testing. Qualcomm plans to pass on those increases through double-digit price hikes, but benefits are expected to emerge gradually. For the current quarter, Qualcomm forecast adjusted profit per share of $2.05 to $2.25, well below analysts' estimate of $2.36. The company also said its modem share in the upcoming iPhone would be materially lower than its prior 20% estimate, indicating Apple business will shrink faster than anticipated. Qualcomm remains optimistic about AI and data center expansion, with non-handset revenue growth expected to accelerate to over 60% in fiscal 2027. At least six analysts cut price targets, with the mean target at $208.68.
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