Qualcomm shares soar on reports of 100% 5G modem chip supply for 2023 iPhone

• Shares rose more than 5% to a session high

Shares of Qualcomm (NASDAQ: QCOM) rose more than 5% on Tuesday after a prominent Apple Inc. (NASDAQ: AAPL) analyst said that Apple could continue to rely on the former’s 5G modem chip.

For the last several years, Apple has been working to develop its own 5G modem chip so that it won't need to rely on Qualcomm as a supplier, but according to Apple analyst Ming-Chi Kuo, Apple's efforts "may have failed."

“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%),” Ming-Chi Kuo, an analyst at TF International Securities, wrote in a tweet.

Qualcomm previously expected to supply only 20% of the modem chips to connect Apple's iPhone wireless data networks by the device's 2023 launch.

Even with Tuesday’s rally, Qualcomm shares are down 26% this year, tumbling alongside the rest of the tech market.

Source - Twitter

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