# Qualcomm Shares Focus Amid AI Costs and Smartphone Challenges

> Qualcomm's Q4 earnings and AI cost concerns drive stock focus as smartphone demand weakens.
- Title: Qualcomm Shares Focus Amid AI Costs and Smartphone Challenges
- Summary: Qualcomm's Q4 earnings and AI cost concerns drive stock focus as smartphone demand weakens. Qualcomm shares face 11.2% drop after Intel earnings as…
- Keywords: qualcomm, ai costs, smartphone revenue, q4 earnings, apple modem, semiconductor, stock market, handset chips, memory prices, starlink mobile, mint
- Source: mint — https://livemint.com/market/stock-market-news/us-markets-why-qualcomm-shares-are-in-top-focus-today-with-quarterly-earnings-growth-outlook-amid-ai-costs-concerns-11793799657674.html
- Author: Rajendra Saxena
- Published: 2026-11-04T15:11:53+00:00
- Read time: 1 min
- Topics: qualcomm, ai costs, smartphone revenue, q4 earnings, apple modem, semiconductor, stock market, handset chips, memory prices, starlink mobile, money, business
## Qualcomm's Smartphone Market Dependence
Qualcomm's smartphone chip revenue remains its biggest contributor but faces challenges from Apple's in-house modem development and softer Android demand.
## Q4 Earnings Preview
Wall Street expects Qualcomm to report $10.15 billion revenue and $2.16 adjusted earnings per share for Q4 2026, showing 10% year-over-year revenue decline.
## Smartphone Revenue Decline
Handset revenue fell 25% year-over-year to $5.2 billion in Q4 2026, with Q3 revenue down 4% from previous year.
## Apple's Modem Strategy Impact
Apple's shift to in-house cellular modems reduces Qualcomm's share of modem supply for next-generation iPhones, lowering expected revenue from Apple products.
## Q3 Financial Performance
Qualcomm reported $9.95 billion revenue for Q3 FY2026, down 4% year-over-year, with non-GAAP earnings per share at $2.21, down 20.2%.
## Starlink Mobile Partnership
Qualcomm signed a multi-year deal with SpaceX to supply radio equipment for Starlink Mobile's US 5G network, starting installations in 2027.
## Stock Performance Impact
Qualcomm shares dropped 11.2% on Friday, October 30 after Intel's earnings, reflecting broader concerns about memory shortages and consumer spending.
## Q4 Revenue Guidance
Qualcomm guided handset revenue to $5.2 billion in Q4 2026, representing a 25% year-over-year decline from the previous year.
## AI Cost Concerns
Rising AI spending and semiconductor manufacturing costs threaten Qualcomm's growth as competition intensifies in the semiconductor industry.
## Key takeaway

Qualcomm shares face 11.2% drop after Intel earnings as smartphone revenue declines 25% year-over-year with AI spending rising.