TLDR
- Qualcomm will report its earnings after the market closes. It is expected to achieve a revenue of $12.13 billion and an adjusted EPS of $3.39 for the December quarter.
- The stock has declined by 15% this year and is trading at a 44% discount compared to the S&P 500’s price – to – forward earnings ratio.
- Bernstein maintains an Outperform rating with a $200 price target, despite concerns about the smartphone market due to rising memory prices.
- The options market anticipates a roughly 6% movement in the stock price for the earnings. The current bias score of -1 indicates a slight bearish sentiment.
- Key price levels to monitor include the $146 – $148 support zone and the $150 – $152 resistance area.
Qualcomm will report its December quarter results after the market closes today. Wall Street expects a revenue of $12.13 billion and an adjusted earnings per share of $3.39.
This year, the chipmaker is facing challenges. In 2026, the stock has fallen by 15%, underperforming the broader semiconductor sector.
Meanwhile, the iShares Semiconductor ETF has increased by 13% over the same period. This divergence highlights investors’ specific concerns regarding Qualcomm’s business.
Rising memory prices have raised concerns about smartphone demand. Higher component costs may slow down device upgrades this year.
Despite these negative factors, Bernstein analyst Stacy Rasgon sees an opportunity. He reaffirmed an Outperform rating on Monday with a $200 price target.
“Qualcomm has remained unpopular due to the general disinterest in smartphones and recent trends in the memory market,” Rasgon wrote. “We still believe that there is underlying value [in its] objectively strong product portfolio.”
The valuation situation supports his view. Its price – to – forward earnings ratio is trading at a 44% discount to the S&P 500.
For a company with leading positions in mobile processors and 5G chipsets, this is a significant discount. The market is factoring in pessimism that may not fully represent the company’s strengths.
Market Positioning Ahead of Earnings
Options pricing suggests that the market expects the stock price to move by roughly 6% in either direction. This implied movement does not indicate bullish or bearish sentiment but rather expectations of volatility.
Recent trading patterns show that the selling pressure is weakening. Downward attempts have repeatedly stalled without sustained follow – through.
The price has shifted from a directional decline to range – bound trading. This suggests that sellers are no longer easily able to drive the market.
The stock is trading near the lower end of its post – earnings range. It remains in a corrective phase that began after the previous quarterly report.
Analysts expect the current quarter’s revenue to be $11.11 billion and the EPS to be $2.90. These figures are as important as the December quarter results for assessing the company’s business momentum.
Key Price Levels
The $146 to $148 zone represents active support. Staying above this area keeps the stabilization process on track.
A sustained drop below $146 would indicate that sellers have regained control, which could lead to further downward pressure.
On the upside, the $150 to $152 level marks resistance. Failed rallies at this level would reinforce the range – bound trading pattern rather than signal a trend reversal.
Market participants are closely watching these levels. They provide more context than simple directional predictions ahead of the report.
The current market bias score is -1 on a scale from -10 to +10. This reflects lingering weakness but also signs that the downward pressure is diminishing.
A score close to zero indicates low conviction and higher uncertainty. The market is not providing strong directional signals either way.
Despite market skepticism, Qualcomm’s product portfolio remains strong. The company continues to dominate the mobile and wireless chipsets market.
The December quarter results will show whether rising memory costs are actually affecting smartphone demand or if the market has overreacted to these concerns.
