Why Investors Shouldn’t Sweat the Dip in Qualcomm’s Handset Revenue, According to Experts

Anushka Mukherji

Sat, August 1, 2026 at 8:00 AM PDT 8 min read

The earnings season is in full swing, with tech giants unveiling their quarterly results one after another. This time, however, the market has been highly selective. Even companies posting blockbuster earnings have struggled to impress investors as concerns over heavy artificial intelligence (AI) spending and sky-high expectations continue to weigh on sentiment. Qualcomm (QCOM) became the latest casualty after reporting its fiscal 2026 third-quarter results on July 29. 

While the chipmaker posted another solid quarter overall, its earnings report revealed a few cracks that were enough to sour investor sentiment. The biggest weakness came from Qualcomm's core semiconductor business (QCT), where handset revenue tumbled nearly 20% year-over-year (YOY). The decline was driven by ongoing memory supply shortages and a faster-than-expected loss of modem share at Apple (AAPL). 

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Qualcomm said the impact will intensify in its fiscal fourth quarter after its share in Apple's next iPhone lineup fell materially below its earlier expectations. Apple has been steadily rolling out its in-house modem across more iPhone models as part of its long-term plan to reduce its dependence on third-party suppliers. Adding to investor concerns, Qualcomm issued softer-than-expected guidance for the fourth quarter, citing persistent supply shortages for PC components, particularly memory. The mixed report sent investors rushing for the exits, but not everyone on Wall Street is worried. 

In fact, many analysts argue that the market is focusing too much on Qualcomm's near-term handset struggles while overlooking the company's rapidly growing businesses in AI data centers, automotive, and the Internet of Things (IoT). Why do experts think Qualcomm's recent pullback may be more of a buying opportunity than a reason to panic?

About Qualcomm Stock

For decades, Qualcomm has been at the heart of the mobile revolution. Headquartered in San Diego, California, the semiconductor leader rose to global prominence by developing the modem and processor technologies that power smartphones across the world. Its Snapdragon chips have become synonymous with premium Android devices, while its vast portfolio of wireless patents has made Qualcomm one of the most influential players in the communications industry.