Why Did Qualcomm Fall 7.4% in November?



Qualcomm’s stock price

Qualcomm’s (QCOM) stock price has been under pressure in 2018. All of the semiconductor companies have felt pressure amid US-China trade war concerns and global uncertainty. Qualcomm’s stock price has declined almost 9% in the past year as of December 4. Qualcomm stock fell ~7.4% in November amid global pressure and a major sell-off in the tech sector in October.

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Qualcomm’s troubles

Qualcomm and other tech stocks have been falling since the beginning of October. Investors have become increasingly cautious and doubtful about tech giants’ futures amid rising federal interest rates and the ongoing trade war between the US and China. Investors want to pull out of their investments. Like Qualcomm, NVIDIA (NVDA) and Marvell Technology (MRVL) stocks fell 22.4% and 1.8%, respectively.

Apart from the recent sell-off, the semiconductor industry was hit by the sudden rise in demand in the PC market. Intel (INTC), the world’s largest chipmaker, admitted that it’s struggling with a supply shortage for its PC CPUs (central processing units) due to higher-than-expected CPU demand and a delay in the volume production of the 10nm node.

Qualcomm also had to terminate its NXP Semiconductors (NXPI) acquisition in July. Qualcomm had to pay a termination fee of $2 billion to NXP Semiconductors. President Trump also blocked Broadcom from acquiring Qualcomm in March. Qualcomm\ faced the loss of modem orders for Apple’s new iPhones, which led to a fall in the shipments of the Mobile Station Modem by 50 million–55 million units in the fourth quarter.


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