Why Qualcomm Stock Was Rocking a 4.5% Gain Today
Shares of massive mobile chip designer Qualcomm (NASDAQ: QCOM) were rallying 4.1% today as of 11:30 a.m. ET. By comparison, the S&P 500 and Nasdaq Composite were up a respective 1.1% and 1.5%.
There was no specific news from the company to cause the rally, but this can likely be chalked up to macroeconomic conditions. Semiconductor stocks in general were hammered in June as evidence began to pile up that the global consumer is tapping the brakes on electronics purchases. Memory chipmaker Micron Technology reported on the last day of June that there's an excess of consumer device inventory, and it could take a couple of quarters to work that excess off.
Given that Qualcomm derives most of its revenue from smartphones, the news hasn't been great. The company could be in for a slowdown in growth this year if the 5G mobile upgrade cycle takes a breather. The stock is down nearly 28% so far in 2022, even after today's jump.
Source Fool.com
