Qualcomm's 5G Chip Deal With Apple: Stock Reversal In Sight?
Portfolio Pulse from Piero Cingari
Qualcomm Inc. (NASDAQ:QCOM) and Apple Inc. (NASDAQ:AAPL) have entered into a three-year deal over 5G chips. This comes as Apple's efforts to develop its own 5G chips seem to be facing challenges. Last year, Apple’s modem purchases accounted for 16% of Qualcomm's earnings. Despite this, Qualcomm's shares have dropped by 20% over the past year. However, Qualcomm's shares were up 3.6% during early trading on Monday.
September 11, 2023 | 1:49 pm
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Apple has entered into a three-year deal with Qualcomm over 5G chips, indicating challenges in Apple's efforts to develop its own 5G chips.
The deal with Qualcomm suggests that Apple's efforts to develop its own 5G chips might be facing challenges. However, it's unclear how this will impact Apple's stock in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Qualcomm has entered into a three-year deal with Apple over 5G chips. Despite a 20% drop in shares over the past year, Qualcomm's shares were up 3.6% during early trading on Monday.
The partnership with Apple could potentially boost Qualcomm's earnings, as Apple’s modem purchases accounted for 16% of Qualcomm's earnings last year. The news of the deal has already had a positive impact on Qualcomm's shares, which were up 3.6% during early trading on Monday.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100