UK lawsuit over smartphone chip royalties will be withdrawn][Retail & Consumercategory] [General Mills cuts annual sales and profit forecast][category] [FTSE 100 ticks up as soft jobs data raises rate cut bets; metal prices drag miners] Morning Bid: Sleepy 'uber-bulls' | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 13, 2026. REUTERS/Br ...

Qualcomm says UK lawsuit over smartphone chip royalties will be withdrawn | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A Qualcomm logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo [Purchase Licensing Rights, opens new tab]- Companies[Apple Inc]Follow[Qualcomm Inc]Follow[Samsung Electronics Co Ltd]FollowLONDON, Feb 17 (Reuters) - Qualcomm [(QCOM.O), opens ...

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is positioned to potentially join the $3 trillion market cap club, driven by its leadership in advanced semiconductor manufacturing and strong financial performance [2][3]. Company Overview - TSMC is the world's largest semiconductor foundry with a market capitalization of $1.9 trillion, holding a 71% share of the global chip market and producing over 90% of the most advanced semiconductors [5][9]. - The company has transitioned from generating most of its revenue from smartphone chips to advanced chips for AI, data centers, and high-performance computing, which now account for 55% of its sales [6]. Financial Performance - In Q4, TSMC reported revenue of $33.7 billion, a 26% year-over-year increase, and earnings per American Depository share of $3.14, up 35% [7]. - The gross margin improved to 59.9%, up 380 basis points, and the operating margin increased to 50.8%, up 510 basis points, indicating enhanced operational leverage [8]. - The company forecasts Q1 revenue of $35.2 billion, representing a 38% year-over-year growth [8]. Market Position and Future Outlook - Analysts project TSMC's revenue to reach $157.8 billion by 2026, with expectations of $193.9 billion and $232.8 billion in 2027 and 2028, respectively, positioning the company for a potential $3 trillion market cap by 2029 [10][11]. - The demand for high-end semiconductors is expected to grow, with annual sales projected to approach $1 trillion by 2026, benefiting TSMC as a leading provider [12].

分组1 - Software stocks have experienced a significant decline, with a 25% drop in value this week, attributed to unrealistic pricing and a challenging market backdrop [1][3] - The investment thesis for software companies has been undermined by the lack of anticipated interest rate cuts and negative updates from major players like Anthropic and Google [4] - Qualcomm has issued disappointing guidance, citing weakness in the smartphone market due to a global memory chip shortage, which may persist until 2027 [5] - Arm Holdings has also provided poor guidance, linking its challenges to memory chip shortages, which could lead to reduced royalty sales from mobile processor sales [6] 分组2 - Alphabet shocked investors with a capital expenditure forecast of up to $185 billion for the year, significantly higher than the Street estimate of around $120 billion [7]

Qualcomm (QCOM) stock is slipping on Feb. 5, after the semiconductor giant issued disappointing Q2 guidance, citing a global memory shortage it believes will remain an overhang on smartphone production in 2026. At the time of writing, QCOM shares sit decisively below their key moving averages (MAs), signaling the downward pressure is unlikely to subside anytime soon. More News from Barchart Still, the relative strength index (RSI) and options data warrants buying Qualcomm stock, now down 25% versus its ...

Core Viewpoint - Memory shortages are expected to constrain cell phone sales for an extended period, negatively impacting demand for companies in the chip industry, including Qualcomm and Arm Holdings, as indicated by disappointing results reported by both companies [1] Group 1: Industry Impact - The ongoing memory shortages are anticipated to limit the sales of cell phones, which will subsequently affect the overall demand for the chip industry [1] - Executives and analysts have highlighted that these shortages will have a prolonged effect on the market dynamics within the chip sector [1] Group 2: Company Performance - Qualcomm and Arm Holdings reported results that fell short of investor expectations, reflecting the challenges posed by the current market conditions [1] - The disappointing financial results from these companies underscore the adverse effects of supply chain constraints on their performance [1]

Core Viewpoint - The current AI boom represents a significant technological turning point, comparable to the introduction of the internet, but skepticism exists regarding current valuations in the market [1][2]. Company Overview - Taiwan Semiconductor Manufacturing Company (TSMC) is a crucial player in the AI supply chain, manufacturing chips for various tech companies that rely on its efficiency and scale [2][4]. - TSMC holds a virtual monopoly on advanced AI chip manufacturing, making it the most trusted partner for tech companies [4]. Financial Performance - TSMC achieved its best year ever in 2025, generating $122 billion in revenue, which reflects a nearly 36% year-over-year increase [7]. - The company has a market capitalization of $1.7 trillion, with a gross margin of 59.02% and a dividend yield of 0.93% [6]. Industry Context - The demand for AI-related revenue has positively impacted TSMC's earnings, but the company is positioned to thrive even if the AI boom slows down or turns out to be a bubble [6][9]. - Major companies such as Apple, Nvidia, Tesla, and Broadcom depend on TSMC for their chip manufacturing needs, indicating a strong reliance on TSMC within the tech hardware sector [6][9].

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) is a crucial player in the AI supply chain, manufacturing chips for companies like Nvidia and AMD, and is currently trading at a discount despite impressive growth [1][2]. Company Overview - TSMC is the world's largest semiconductor foundry, known for its efficiency, scale, precision, and yield, making it the most dependable choice for companies needing chip manufacturing [3]. - The company has shifted from primarily manufacturing smartphone chips to focusing on advanced AI chips for data centers, capturing a market share in the upper 90% range for these products [4]. Financial Performance - TSMC generated $122.4 billion in revenue in 2025, marking a nearly 36% increase from 2024, and achieving its first $100 billion year [6]. - The gross margin increased from 56.1% to 59.9% in 2025, with an operating margin rise from 45.7% to 50.8%, indicating strong operational execution [7]. - In Q4, TSMC reported a gross margin of 62.3% and an operating margin of 54% [7]. Market Position and Valuation - TSMC operates a virtual monopoly on advanced AI chips, allowing it to command premium pricing for its services [8]. - Despite a 69% increase in stock price since the start of 2025, TSMC trades at only 25 times its projected earnings for the next year, which is cheaper compared to competitors like Broadcom, Intel, and Nvidia [9]. - Given TSMC's market dominance, pricing power, and growth opportunities, its current valuation appears attractive for long-term investors [11].

Airline Industry - United Airlines plans to reduce 10% of flights across over 40 airports, affecting approximately 3,500 to 4,000 flights daily, with no specified end date for these reductions [1][2] - The impact on international and long-haul routes is expected to be minimal, which are higher margin segments for United Airlines [1] - The ongoing government shutdown, now in its 37th day, may lead to further disruptions in the airline industry, although current TSA lines remain unaffected [1][2] Nvidia - Jensen Huang, CEO of Nvidia, expressed concerns about the AI race, stating that China is "nanoseconds" behind the U.S. in AI development, while also indicating a desire to sell chips to both countries [2][3] - Huang's comments reflect a dual strategy of wanting to maintain sales while acknowledging the competitive landscape in AI technology [2][3] Qualcomm - Qualcomm reported a 10% revenue increase to $11.27 billion, beating expectations, and guided higher for future revenue [6][7] - The company recorded a net loss of $3.12 billion, or about $289 per share, primarily due to a tax expense, but this is typically excluded from performance evaluations [6][9] - Qualcomm's licensing business saw a 7% decline to approximately $1.41 billion, raising concerns about market share loss to competitors like Apple [8][9] - For the upcoming quarter, Qualcomm expects revenue between $11.8 billion and $12.6 billion, with a midpoint of $12.2 billion, which is above expectations [7][8]

Core Insights - Qualcomm's stock is experiencing a decline despite reporting strong earnings, with adjusted earnings of $3.00 per share and revenue of $11.27 billion, both exceeding Wall Street estimates [3][4] - The company's guidance for the first quarter also surpassed projections, but rising expenses and a soft outlook for automotive chip sales have raised concerns [3][4] Financial Performance - Fourth-quarter chip revenue reached $9.8 billion, exceeding the consensus estimate of $9.4 billion, with a year-over-year increase of 13%, and an 18% increase when excluding the declining business with Apple [4] - Licensing revenue decreased but was not as severe as anticipated, highlighting Qualcomm's strong position in the cellular radio chip market [6] Market Position and Challenges - Qualcomm maintains a dominant position in the high-end Android phone market, despite overall weak global Android phone sales [5] - The company faces ongoing conflicts with major customers, particularly Apple, which is transitioning away from Qualcomm's chips for its devices [7][8] Future Prospects - Qualcomm is focusing on new AI accelerator chips and servers, which are expected to generate significant revenue by 2027, although the company must convince customers to choose its products over established competitors like Nvidia [8][9] - The challenge lies in attracting customers beyond major cloud service providers, who often prefer their own chip solutions [9]