Qualcomm (QCOM) Loses 8.8% on Nvidia Competition Fears

Qualcomm Inc. (NASDAQ:QCOM) is one of the 10 Stocks Entering June in the Wrong Direction.

Qualcomm snapped a two-day winning streak on Monday, shedding 8.78 percent to finish at $228.99 apiece, as investors resorted to profit-taking following the previous trading day’s record high, while digesting the impact of Nvidia Corp.’s foray into the devices market.

Over the weekend, Nvidia unveiled what it called the RTX Spark superchip, a new processor co-developed along with Microsoft, which is intended to cater to the devices market, including personal computers.

Photo by Tima Miroshnichenko on Pexels

Nvidia’s entry posed a threat to Qualcomm Inc. (NASDAQ:QCOM), which produces the Snapdragon family of processors currently used by smartphones, tablets, and laptops, among other devices.

Nvidia said that its RTX Spark superchip is targeted for official launch in fall 2026 in Windows PCs such as Dell, HP, ASUS, Lenovo, and MSI.

RTX aside, the decline in shares of Qualcomm Inc. (NASDAQ:QCOM) can also be attributed to profit-taking after it hit an all-time high of $259.92 last Friday. The figure implied a growth of 44.7-percent from April’s $179.58 close.

In other news, Qualcomm Inc. (NASDAQ:QCOM) is set to pay $0.92 worth of dividends to all shareholders on record as of June 4, payable on June 25.

While we acknowledge the risk and potential of QCOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QCOM and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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