Qualcomm Pledges Global Layoffs as Handset Revenue Falls 20%: “Stronger Performance Culture”

A federal jury found Arm breached its agreement with Qualcomm and interfered with its Meta deal, awarding $1 in damages. Qualcomm seeks a five-year royalty suspension, potentially worth $1.5B, which a judge will decide. The dispute stems from Arm's revocation of Nuvia's license and Qualcomm's use of its technology. Qualcomm also alleges Arm withheld technical support and unfairly competed. Arm denies wrongdoing, arguing Qualcomm wasn't harmed.

Qualcomm (QCOM) stock fell 13% in October, driven by smartphone demand concerns and broader semiconductor weakness. Apple-related revenue is expected to drop 50% sequentially in Q4. Qualcomm trades at 19x forward earnings, above its 5-year average. Arm Holdings (ARM) also declined 37% over the same period. Qualcomm announced a patent agreement with Huawei and expects growth in non-handset sectors.

Microsoft, Alphabet, Goldman Sachs, and 13 other companies have objected to trading tokenized versions of their shares on OKXICE, a 24/7 crypto venue. The SEC's new rule allows such trading, but the companies' concerns include price drift and reputational risks. OKXICE plans to trade tokens for 62 companies, with 16 objecting so far. The objection list is dominated by AI and tech firms, which are particularly sensitive to price volatility and news-driven swings.

Wall Street set to open lower on Thursday due to AI-related concerns, with Tesla, Meta, and other tech stocks declining. Tesla fell 3.5% after cutting its capital expenditure forecast, while Meta slipped 2.4% due to AI expansion costs. SpaceX and Super Micro also dropped despite strong earnings. Oil prices rebounded, adding to market jitters. S&P 500 earnings growth forecast raised to 32.3%.

Susquehanna raised AMD's (AMD) price target to $620 from $550, citing strong AI and server demand. Qualcomm's (QCOM) target was increased to $185, while Intel's (INTC) was cut to $105. The firm noted extended semiconductor lead times and competitive pricing, with AI infrastructure driving growth amid weak consumer markets.

AT&T reported Q3 revenue of $32.3bn, up 5.3% YoY, but plans to reduce capital investments in 2027-2028. Telenor chose F5's AI service plane for its sovereign AI infrastructure. Qualcomm will cut jobs to build a 'stronger performance culture.' T-Mobile US and Ericsson are collaborating on AI-RAN and 5G-Advanced. NTT Docomo and NTT Group developed AI tech to optimize base station communications and renewable energy use. Vodafone Spain uses Optare's AI to predict and prevent fibre network issues.