REUTERS/Dado Ruvic/IllustrationAug 3 (Reuters) - Qualcomm (QCOM.O) tumbled nearly 9% on Thursday after a gloomy forecast signalled more pain for the largest maker of smartphone chips from the ongoing slump in the consumer electronics market.
The stock has risen 19% this year, but has underperformed the broader chip industry (.SOX) on worries about smartphone demand.
The company disappointed investors on Wednesday with a current-quarter revenue forecast that was below market estimates, as well as adjusted sales that missed expectations.
"Huawei headwinds are new (and larger than we would have thought), and (Qualcomm) stock is admittedly un-sexy," Bernstein analyst Stacy Rasgon said.
Qualcomm has a 12-month forward price-to-earnings ratio of 14.05, much lower than Nvidia's (NVDA.O) 43.94 and the industry median of 20.51.
Persons:
Dado Ruvic, Piper Sandler, Piper, Bernstein, Stacy Rasgon, Aditya Soni, Anil D'Silva
Organizations:
Qualcomm, REUTERS, Huawei, Thomson