We're Sunsetting Our Position in This Four-Rated Chip Stock

Symbol	Transaction Type	# Shares Traded	Recent Price $	Shares Owned After Trade	% Portfolio
QCOM	Sell	333	167	0	0

After you receive this Alert, we will sell our remaining 333 shares of Qualcomm (QCOM) at or near $167. This will close out the Pro Portfolio’s position in QCOM, with this last batch generating a modest return.

We are using the post-Taiwan Semiconductor (TSM) earnings pop in Qualcomm shares to complete our exit. As we discussed in today’s TSM earnings note, that company also sees rising memory costs resulting in minimal unit growth for the PC and smartphone markets in 2026. Moreover, between TSM’s Q1 2026 guidance and corresponding comments from Foxconn, both of those markets will experience seasonal declines between the December 2025 and March 2026 quarters.

While Qualcomm could surprise modestly to the upside with its December-quarter results, those TSM and Foxconn comments, as well as those from others such as Micron Technology (MU) mean there is a risk Qualcomm’s guidance for the first half of 2026 underwhelms. The smart move for us is to complete our exit now in order to avoid any additional share-price weakness. However, given our thoughts on consumer AI adoption, we will place Qualcomm in the Bullpen and look to revisit the shares mid-2026.

As for Apple...

We will remain owners of Apple (AAPL) shares in part, given TSM’s comment that higher-end smartphones are less susceptible to memory price increases. To that, we’d add Apple’s impressive supply chain prowess, but we continue to think the next big catalyst for AAPL shares will be the unveiling of Apple’s revamped, AI-powered Siri. That is expected around springtime, which, despite some cold temperatures outside today, is just a few months away.

Should the Google (GOOGL) -powered Siri stun, we believe it will accelerate the iPhone replacement cycle. Estimates suggest that around 90% of iPhones in the wild are not AI-capable. Let’s also remember that Qualcomm’s exposure to Apple will continue to ramp down this year and next as Apple pivots further toward its custom modem chips.

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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long QCOM and AAPL.