Shares of Qualcomm (QCOM) jumped after a well-followed analyst said the company’s chips are going to be in Apple’s (AAPL) next generation iPhones after Apple encountered problems with its own chips. Ming-Chi Kuo, an analyst at TF International Securities, said via Twitter: “My latest survey indicates that Apple’s own iPhone 5G modem chip development may have failed, so Qualcomm will remain exclusive supplier for 5G chips of 2H23 new iPhones, with a 100% supply share (vs. company’s previous estimate of 20%). Qualcomm’s revenue and EPS in 2H23-1H24 will likely beat market consensus thanks to its sole supplier position for 5G chips of 2H23 new iPhones as Apple fails to replace Qualcomm. I believe Apple will continue to develop its own 5G chips, but by the time Apple succeeds and can replace Qualcomm, Qualcomm’s other new businesses should have grown enough to significantly offset the negative impacts caused by the order loss of iPhone 5G chips.” Qualcomm shares in afternoon trading are up 7%, or $8.48, to $135.66.
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