What Is Going On With Qualcomm Stock Friday?

Oct 10 - Qualcomm QCOM stock faces pressure on Friday, fell about 1% in the morning after China's market regulator opened an antitrust investigation into the U.S. chipmaker's acquisition of Israeli automotive chip firm Autotalks.

China's State Administration for Market Regulation said it is examining whether Qualcomm failed to properly disclose certain details when completing the deal. The regulator added that the inquiry will assess potential violations of the country's anti-monopoly law.

Qualcomm finalized the purchase in June, acquiring Autotalks, which develops chips that help vehicles communicate to prevent crashes. The company did not reveal the deal's value or how it overcame earlier regulatory obstacles.

The San Diego-based firm previously dropped its 2024 bid for Autotalks due to approval delays. Qualcomm and Autotalks have not yet commented on the Chinese probe.

In 2015, Qualcomm paid a $975 million fine to settle an earlier antitrust case in China. The latest investigation follows Beijing's recent scrutiny of U.S. chipmaker Nvidia NVDA over monopoly concerns.

Analysts said the move may deepen regulatory pressure on American semiconductor firms, as Qualcomm earns about 46% of its fiscal 2024 revenue from Chinese handset and automotive customers.