Qualcomm (QCOM) Stock Falls 6% This Week Despite Q2 Earnings Beat

Qualcomm Inc QCOM stock fell 6.1% this week to $139.33 despite reporting stronger-than-expected second-quarter results.

What To Know: The chipmaker posted revenue of $10.84 billion, up 15% year-over-year, and non-GAAP earnings per share of $2.85, a 17% increase. Both figures topped analyst estimates, marking Qualcomm’s eighth consecutive revenue and seventh consecutive EPS beat.

Growth was driven by its QCT segment, with handset sales rising 12% to $6.93 billion, IoT up 27% to $1.58 billion, and automotive revenue surging 59% to $959 million. Licensing revenue remained flat. CEO Cristiano Amon highlighted continued strength across markets and a focus on diversification.

For the third quarter, Qualcomm guided revenue between $9.9 billion and $10.7 billion and EPS between $2.60 and $2.80, in line with analysts' expectations.

Despite the strong performance, analysts offered mixed reactions. While Rosenblatt and Benchmark reiterated Buy ratings, the latter lowered its price target amid concerns over normalizing handset demand and macroeconomic uncertainty.

Still, optimism remains for growth in IoT and automotive, particularly with upcoming launches from partners like Samsung and strong momentum in China's premium Android market.

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How To Buy QCOM Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Qualcomm’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, QCOM has a 52-week high of $230.63 and a 52-week low of $120.80.