Qualcomm’s post-earnings slump has raised concerns that the stock has no bottom in sight for 2026. Despite delivering $12.25 billion in quarterly revenue, a cautious outlook led to a significant drop in stock price. HSBC warns that predicting a clear bottom in 2026 may be unrealistic.

The semiconductor industry is expected to exceed $1 trillion in revenue in 2026, with AI-driven memory and logic demand fueling growth. Qualcomm, positioned between this surge and its own struggles, faces uncertainty about its future performance versus the industry’s projected growth.

Qualcomm, known for designing wireless chips and connectivity solutions, offers a 2.61% dividend yield at a current price of about $140. The stock is down 18% year-to-date and 19% over the past 52 weeks, trading at a discounted valuation compared to sector peers.

Despite a profit of $3 billion in the latest fiscal quarter, Qualcomm’s revenue narrowly missed expectations at $12.25 billion. The company’s focus on AI infrastructure and data center connectivity has led to strategic moves like the acquisition of Alphawave Semi.

Analysts project a decline in earnings per share for Qualcomm in the March 2026 quarter, reflecting ongoing challenges. However, management’s guidance for the fiscal second quarter appears optimistic, with a range for EPS and revenue provided.

While concerns persist about Qualcomm’s earnings trajectory in 2026, some analysts remain cautiously optimistic about the company’s long-term prospects. The stock maintains a “Moderate Buy” recommendation, with an average target suggesting potential upside despite near-term challenges.

Read more at Yahoo Finance: Wall Street Wants You to Sell QCOM Stock After Earnings