Qualcomm shares fall on Intel warning and legal concerns

Qualcomm Inc shares dropped 11.7% in mid-day trading Friday to $163.75 as the semiconductor sector declined following Intel Corp's fourth-quarter earnings guidance.

Intel reported after the market close on Wednesday that it expects fourth-quarter revenue between $15 billion and $16 billion, below the Wall Street consensus of approximately $17 billion. The company projected adjusted earnings per share of $0.25, down from $0.52 in the third quarter.

Intel's management said the PC slowdown will continue at least through the first half of 2027. The company cited rising memory costs and inventory corrections by PC manufacturers as factors affecting the outlook.

Qualcomm and Huawei Technologies Co finalized a multi-year patent licensing agreement Friday. Under the deal, Qualcomm will pay Huawei for its patents, reversing the traditional arrangement and adding new costs for the chipmaker's licensing division.

Qualcomm is also returning to court against Arm Holdings plc over allegations involving withheld chip-testing tools and leaked deal threats. The legal action comes ahead of Qualcomm's fiscal 2026 fourth-quarter earnings report scheduled for November 4.

The company's guidance already indicates revenue and earnings per share will be below year-ago levels.

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