Qualcomm shares drop 6% amid profit-taking and mixed AI sentiment

Qualcomm shares fell approximately 6% during Friday trading, dropping to around $178. This decline occurred despite a 1% gain in the iShares Semiconductor ETF (SOXX), suggesting the selloff was specific to Qualcomm rather than a broader sector rotation. The drop follows a month-long rally, and analysts suggest the move may be driven by profit-taking and positioning-driven reassessments.

While the stock experienced a significant single-day drop, it remains up 12% over the trailing month. Other radio frequency peers, including Skyworks Solutions and Qorvo, also saw declines of roughly 2%, though they remained above their monthly starting points.

Investor sentiment remains mixed. Some analysts view the company as undervalued relative to other semiconductor stocks, particularly as it expands from smartphone chips into AI infrastructure. However, others have expressed concerns regarding a pivot to AI that may not yet offset weakness in the core handset business, citing factors such as declining Apple-related revenue and weaker phone demand.