Semiconductor ETFs to Buy as Qualcomm Plunges Despite Q4 Earnings Beat

Impact · against what's priced in

The plunge in Qualcomm's price reflects the market's refusal to trust the diversification story amid a collapse in handset revenues and new political headwinds for data centers. For Apple, the acceleration of modem insourcing is already reflected in the current valuation, making this update a non-event.

QCOM−0.10

Already priced in

The price assumes

A 20% revenue decline in the Handset segment

The 26% year-over-year collapse in handset chip revenues is slightly steeper than the 20% decline the price already assumed, but it confirms the market's expectation of a severe handset downturn.