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: firstname.lastname@example.org