There will be some short-term growing pains for Qualcomm as it ramps up 28 nm production, said Credit Suisse analyst Kulbinder Garcha, but he doesn't foresee it being a long-term issue. The weak third-quarter guidance did cause him to lower his estimates and price target down from $80 to $75, but he did reiterate his outperform rating.
Qualcomm's short-term pain may very well be indicative of exceptionally strong iPhone and iPad sales, and ultimately, be Apple's gain.
Once again, it looks like what is good for Apple is only good for Apple.
Shares of Qualcomm are sharply lower in Thursday trading, off 4.5% to $63.95.Interested in more on Qualcomm? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >To follow the writer on Twitter, go to http://twitter.com/commodity_bull. >To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV