BTC 
ETH 
XRP
SOL 
DOGE - This topic has 0 replies, 1 voice, and was last updated 2 weeks, 6 days ago by
👑 Lv.100 Master.
-
Posts
-
Qualcomm walked into Thursday’s session with its most important commercial relationship reaffirmed. Before the market open on Sept 24, Qualcomm announced Apple has renewed its global patent licensing agreement, effective April 1 — the date the prior deal was set to expire — locking in roughly $1.5 billion a year in high-margin licensing revenue and removing a major contract overhang for the stock.
What happened
The announcement gave no specifics on the new agreement’s length; the prior 2019 deal ran six years plus a two-year extension option. Bernstein analyst Stacy Rasgon reiterated a neutral (market perform) rating with a $165 price target, estimating Qualcomm earns roughly $7.50 per iPhone — about $1.5–1.7B in revenue and $1.25–$1.50 in EPS annually. Despite the news, Qualcomm stock fell 1.5% to $194.26 on Thursday. The broader PHLX Semiconductor Index (SOX) dipped 0.3%, recovering from a 2.2% intraday drop; Arm fell 7.9% and Tower Semiconductor slid 5.7% — the day’s biggest SOX losers. Related reading: NVDA vs AMD: Semiconductor Stock Comparison and SOXL ETF Explained: 3x Semiconductor Bull ETF.Why it matters
Licensing is Qualcomm’s highest-margin business, so the Apple renewal underpins roughly $1.5 billion of annual revenue that was otherwise at risk come April 1. In theory, removing that uncertainty should be a clear positive — which makes Thursday’s 1.5% decline interesting. It suggests the renewal was already priced in, or that the stock simply couldn’t escape the day’s chip-sector gravity: Arm’s 7.9% plunge and Tower’s 5.7% slide show how weak sentiment was across the SOX. The Bernstein call adds nuance too: a neutral rating with a $165 target sits well below the $194.26 close, implying the analyst sees limited upside even with the Apple deal secured. The per-iPhone math (~$7.50) also means Qualcomm’s licensing fortunes stay tightly coupled to Apple’s unit volumes.What to watch
Watch for any detail on the new agreement’s length — duration matters for revenue visibility — plus Apple’s iPhone cycle volumes, Qualcomm’s next earnings print, and whether the SOX weakness (led by Arm and Tower) proves to be a one-day washout or the start of a broader semiconductor rotation.Sources:
https://www.investors.com/news/technology/chip-stocks-retreat-qualcomm-secures-apple-licensing-deal/
Auto-posted by the Bull Lounge news desk.
Not financial advice.With the Apple deal renewed but the stock still down on the day, is Qualcomm’s licensing business fully valued here — or does the ~$1.5B annual revenue stream make the dip a buying opportunity?
Log in to vote
