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Qualcomm's QCT Automotive revenues surged 89% year over year to $2 billion, while IoT revenues rose 4%.
FTXL leads in Qualcomm exposure at 9.08%, followed by two other semiconductor funds.
Shares of Qualcomm (QCOM - Free Report) plunged 9.5% on Nov. 5, despite the company delivering better-than-expected fourth-quarter fiscal 2026 revenues and earnings. The decline was primarily led by a weak profit forecast for the first quarter of fiscal 2027 and a 26% year-over-year collapse in QCOM’s handset chip revenues.
Democrats' victory in the U.S. House and Senate fueled concerns about a potential slowdown in data-center development (that hit semiconductor names across the board), which further weighed on QCOM shares last week.
This sharp pullback — part operational reset, part external shock — might offer an opportune moment for investors eager to capture Qualcomm's accelerating diversification into automotive and data center silicon.
However, factors like Apple's accelerating modem insourcing and softer guidance for the QCT segment’s profit margins, including a 3-point dilution from adding data center operations, could raise concerns and dampen investor confidence in the stock. The memory-cost crunch squeezing global smartphone demand adds another layer of near-term uncertainty.
Democrats' sweeping midterm victories reignited concerns about stricter regulations governing data-center expansion, dampening investor sentiment toward companies with significant exposure to the sector. Against this backdrop, Qualcomm's data-center ambitions, though still sub-scale relative to its handset business, could face pressure from the same political uncertainties that weighed on semiconductor stocks last week.
Against this backdrop, investors seeking to capitalize on Qualcomm's growth potential while mitigating company-specific risks may consider investing in semiconductor exchange-traded funds (ETFs) with meaningful exposure to QCOM rather than investing directly in the stock.
This will let investors gain from Qualcomm's automotive division’s growth and the upside of other semiconductor leaders, while reducing exposure to the volatility associated with the company's capital-intensive expansion.
But before diving straight into these ETFs, let us check Qualcomm's overall performance in the quarter in terms of other metrics.
A Look at QCOM’s Q4 Results
Qualcomm’s fiscal fourth-quarter earnings beat the Zacks consensus estimate by 0.4%, while revenues surpassed the consensus mark by 2.9%.
The company's QCT Automotive segment generated $2 billion in revenues for the first time, marking 89% year-over-year growth, driven by increased adoption of integrated module products for its fifth-generation compute platforms.
QCT IoT revenues increased 4% year over year to $1.9 billion, driven by 20% growth in its industrial, networking and robotics product category.
As of September 2026, QCOM returned $2 billion to stockholders, including $1 billion each in share repurchases and dividends.
Qualcomm expects QCT handset revenues to decline by a mid-single-digit percentage sequentially in the first quarter of fiscal 2027, as continued weakness in Apple-related revenues offsets growth in Android revenues.
The QCT Data Center segment is projected to generate revenues in excess of $650 million, driven by commencements of shipments to custom silicon customers.
Qualcomm expects its QCT non-handset revenues, comprising Automotive, IoT and data center businesses, to increase more than 60% year over year in fiscal 2027.
This fund, with net assets worth $1.05 billion, offers exposure to 37 U.S. semiconductor companies. QCOM enjoys the first spot in this fund, holding 9.08% of its assets.
FTXL has surged 61.8% year to date and charges 60 basis points (bps) in fees. It sports a Zacks ETF Rank #1 (Strong Buy).
This fund, with a market value worth $2.81 billion, includes 31 companies engaged in the semiconductor business. QCOM holds the seventh spot in this fund, with 4.70% of its assets.
SOXQ has soared 49.1% year to date and charges 19 bps in fees. It sports a Zacks ETF Rank #1.
This fund, with net assets worth $65.74 billion, includes 26 companies involved in semiconductor production and equipment. QCOM holds the ninth spot in this fund, with 4.41% of its assets.
SMH has rallied 40.8% year to date and charges 35 bps in fees. It sports a Zacks ETF Rank #1.
View the Zacks #1 Rank List
Image: Shutterstock
Semiconductor ETFs to Buy as Qualcomm Plunges Despite Q4 Earnings Beat
Key Takeaways
Shares of Qualcomm (QCOM - Free Report) plunged 9.5% on Nov. 5, despite the company delivering better-than-expected fourth-quarter fiscal 2026 revenues and earnings. The decline was primarily led by a weak profit forecast for the first quarter of fiscal 2027 and a 26% year-over-year collapse in QCOM’s handset chip revenues.
Democrats' victory in the U.S. House and Senate fueled concerns about a potential slowdown in data-center development (that hit semiconductor names across the board), which further weighed on QCOM shares last week.
This sharp pullback — part operational reset, part external shock — might offer an opportune moment for investors eager to capture Qualcomm's accelerating diversification into automotive and data center silicon.
However, factors like Apple's accelerating modem insourcing and softer guidance for the QCT segment’s profit margins, including a 3-point dilution from adding data center operations, could raise concerns and dampen investor confidence in the stock. The memory-cost crunch squeezing global smartphone demand adds another layer of near-term uncertainty.
Democrats' sweeping midterm victories reignited concerns about stricter regulations governing data-center expansion, dampening investor sentiment toward companies with significant exposure to the sector. Against this backdrop, Qualcomm's data-center ambitions, though still sub-scale relative to its handset business, could face pressure from the same political uncertainties that weighed on semiconductor stocks last week.
Against this backdrop, investors seeking to capitalize on Qualcomm's growth potential while mitigating company-specific risks may consider investing in semiconductor exchange-traded funds (ETFs) with meaningful exposure to QCOM rather than investing directly in the stock.
This will let investors gain from Qualcomm's automotive division’s growth and the upside of other semiconductor leaders, while reducing exposure to the volatility associated with the company's capital-intensive expansion.
But before diving straight into these ETFs, let us check Qualcomm's overall performance in the quarter in terms of other metrics.
A Look at QCOM’s Q4 Results
Qualcomm’s fiscal fourth-quarter earnings beat the Zacks consensus estimate by 0.4%, while revenues surpassed the consensus mark by 2.9%.
The company's QCT Automotive segment generated $2 billion in revenues for the first time, marking 89% year-over-year growth, driven by increased adoption of integrated module products for its fifth-generation compute platforms.
QCT IoT revenues increased 4% year over year to $1.9 billion, driven by 20% growth in its industrial, networking and robotics product category.
As of September 2026, QCOM returned $2 billion to stockholders, including $1 billion each in share repurchases and dividends.
Qualcomm expects QCT handset revenues to decline by a mid-single-digit percentage sequentially in the first quarter of fiscal 2027, as continued weakness in Apple-related revenues offsets growth in Android revenues.
The QCT Data Center segment is projected to generate revenues in excess of $650 million, driven by commencements of shipments to custom silicon customers.
Qualcomm expects its QCT non-handset revenues, comprising Automotive, IoT and data center businesses, to increase more than 60% year over year in fiscal 2027.
Qualcomm-Heavy ETFs to Buy
First Trust NASDAQ Semiconductor ETF (FTXL - Free Report)
This fund, with net assets worth $1.05 billion, offers exposure to 37 U.S. semiconductor companies. QCOM enjoys the first spot in this fund, holding 9.08% of its assets.
FTXL has surged 61.8% year to date and charges 60 basis points (bps) in fees. It sports a Zacks ETF Rank #1 (Strong Buy).
Invesco PHLX Semiconductor ETF (SOXQ - Free Report)
This fund, with a market value worth $2.81 billion, includes 31 companies engaged in the semiconductor business. QCOM holds the seventh spot in this fund, with 4.70% of its assets.
SOXQ has soared 49.1% year to date and charges 19 bps in fees. It sports a Zacks ETF Rank #1.
VanEck Semiconductor ETF (SMH - Free Report)
This fund, with net assets worth $65.74 billion, includes 26 companies involved in semiconductor production and equipment. QCOM holds the ninth spot in this fund, with 4.41% of its assets.
SMH has rallied 40.8% year to date and charges 35 bps in fees. It sports a Zacks ETF Rank #1.