Why Qualcomm Stock Is Trading Lower Today

Qualcomm Incorporated QCOM shares are trading lower Thursday amid competitive concerns from Huawei, which announced its Mate 60 Pro with a new 7nm chip.

What To Know: Qualcomm stock fell over 7% Thursday in response to the news. Huawei could be positioned to retake its market leadership position, with Qualcomm most vulnerable to such a change, if the company can effectively utilize SMIC's 14nm and 7nm process manufacturing and R&D personnel to grow technology and output competitiveness.

Some stocks in the chip sector may also be under pressure Thursday after China implemented its first comprehensive measure aimed at banning the use of Apple AAPL devices for official use.

The ban is part of Beijing's ongoing endeavor to diminish its dependence on foreign technology, particularly in sectors that are considered sensitive.

China has supported its efforts with the introduction of a Chinese-made high-end smartphone which can realistically compete with the iPhone.

Huawei's Mate 60 and Mate 60 Pro smartphones, boasting performance levels matching those of 5G speeds, play an important role in China's departure from foreign technology.

Related Link: T-Mobile's Dividend Debut Boosts Stock, $19 Billion Shareholder Return Announced

QCOM Price Action: Shares of QCOM were down 7.26% at $106.35 at the time of publication, according to Benzinga Pro.

Image by Michael Schwarzenberger from Pixabay