TLDR
- Qualcomm reports earnings after market close with expectations of $12.13 billion revenue and $3.39 adjusted EPS for December quarter
- Stock is down 15% this year while trading at a 44% discount to S&P 500’s price-to-forward earnings ratio
- Bernstein maintains Outperform rating with $200 price target despite smartphone market concerns from rising memory prices
- Options market prices in roughly 6% move for earnings, with current bias score at -1 indicating slight bearish sentiment
- Key price levels to watch include $146-$148 support zone and $150-$152 resistance area
Qualcomm reports its December quarter results after the bell today. Wall Street expects revenue of $12.13 billion with adjusted earnings per share of $3.39.
The chipmaker faces headwinds this year. The stock has dropped 15% in 2026, underperforming the broader semiconductor sector.
Meanwhile, the iShares Semiconductor ETF has climbed 13% over the same period. The divergence highlights investor concerns specific to Qualcomm’s business.
Rising memory prices have sparked worries about smartphone demand. Higher component costs could slow device upgrades this year.
Despite the negativity, Bernstein analyst Stacy Rasgon sees opportunity. He reiterated an Outperform rating Monday with a $200 price target.
“Qualcomm has remained out of favor amid general distaste of smartphones and recent dynamics in the memory market,” Rasgon wrote. “We still believe there is value to be had under the surface [with its] objectively strong product portfolio.”
The valuation story supports his view. Qualcomm’s price-to-forward earnings ratio trades at a 44% discount to the S&P 500.
That’s a steep discount for a company with leading positions in mobile processors and 5G chipsets. The market is pricing in pessimism that may not fully reflect the company’s strengths.
Market Positioning Ahead of Earnings
Options pricing suggests the market expects roughly a 6% move in either direction. This implied move doesn’t indicate bullish or bearish sentiment, just volatility expectations.
Recent trading patterns show selling pressure losing steam. Downside attempts have stalled repeatedly without sustained follow-through.
Price has shifted from directional decline to range-bound trading. This suggests sellers are no longer freely accepted in the market.
The stock trades near the lower end of its post-earnings range. It remains in a corrective phase that started after the previous quarterly report.
Analysts expect current quarter revenue of $11.11 billion with EPS of $2.90. Those figures will matter as much as December quarter results for gauging business momentum.
Key Price Levels
The $146 to $148 zone represents active support. Holding above this area keeps the stabilization process intact.
A sustained break below $146 would signal sellers have regained control. That could trigger further downside pressure.
On the upside, $150 to $152 marks resistance. Failed rallies at this level would reinforce range behavior rather than signal a trend reversal.
Market participants are watching these levels closely. They provide more context than directional predictions going into the report.
The current market bias score sits at -1 on a scale from -10 to +10. This reflects lingering weakness but also signs that downside pressure is fading.
A score near zero indicates low conviction and higher uncertainty. The market isn’t offering strong directional signals either way.
Qualcomm’s product portfolio remains strong despite market skepticism. The company continues to dominate in mobile and wireless chipsets.
The December quarter results will show whether rising memory costs are actually impacting smartphone demand. Or if the market has overreacted to these concerns.
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