TECH - Is Qualcomm Stock Worth Buying Ahead of Q2 Earnings? | Benzinga
Qualcomm Incorporated (NASDAQ: QCOM) shares have witnessed a steady uptrend since November 2023 barring minor hiccups, with the ebb and flow attributable to various macroeconomic developments and corporate achievements. While such ups and downs are part of a stock's progression, the sudden turn of events often tests the stock's inherent strength to withstand the storm and its ability to come up trumps. We believe that Qualcomm has the requisite wherewithal to emerge victorious from the apparent upheaval and strike the right chords in the near future.
However, not all was hunky dory for Qualcomm as it faced some operating challenges in China. The chip-making firm has a significant presence in more than 12 cities in the country, aiming to drive advancements in semiconductors and mobile telecommunications for the larger benefit. The company has been a key supplier of chips and other related components to local smartphone manufacturers like Xiaomi, Huawei and its spin-off brand Honor.
But trouble began with the continued Sino-US trade spat that led the communist nation to impose a ban on the use of iPhones in government offices and state-backed entities as part of its concerted effort toward self-reliance. The restrictions on Apple had an apparent effect on Qualcomm, which is one of the leading suppliers to the iPhone manufacturing firm. Moreover, as QCOM boasts one of the biggest footprints in the communist nation by a U.S.-based firm, the market uncertainties seemed to be taking a toll on its stock. Moreover, as China accounts for the lion's share of Qualcomm's revenues, any disruption in local operation is bound ...