Why Investors Shouldn’t Sweat the Dip in Qualcomm’s Handset Revenue, According to Experts

The earnings season is in full swing, with tech giants unveiling their quarterly results one after another. This time, however, the market has been highly selective. Even companies posting blockbuster earnings have struggled to impress investors as concerns over heavy artificial intelligence (AI) spending and sky-high expectations continue to weigh on sentiment. Qualcomm (QCOM) became the latest casualty after reporting its fiscal 2026 third-quarter results on July 29.

While the chipmaker posted another solid quarter overall, its earnings report revealed a few cracks that were enough to sour investor sentiment. The biggest weakness came from Qualcomm's core semiconductor business (QCT), where handset revenue tumbled nearly 20% year-over-year (YOY). The decline was driven by ongoing memory supply shortages and a faster-than-expected loss of modem share at Apple (AAPL).