QCOM stock falls sharply after inflation data and geopolitical tensions spur rotation out of semiconductor equities.
Qualcomm shares tumbled 11% on May 12 and another 6% on May 14, erasing gains from a post-earnings rally. The selloff reflects broader risk-off sentiment in semiconductor stocks amid rising oil prices and inflation concerns.
The company reported fiscal second-quarter non-GAAP revenue of $10.6 billion, a 2% year-over-year decline, while earnings per share fell 7% to $2.65. Qualcomm highlighted expansion into custom AI chips and data centers, driving a 15.12% surge on April 30.
Investors rotated out of high-growth tech names following a hotter-than-expected inflation print and escalating tensions in the Middle East, pressuring semiconductor stocks tied to processors and memory chips.