Qualcomm Stock (NASDAQ:QCOM)
After the United States Department of Commerce said on Friday that it will ban shipments of certain chips to China, investors in Qualcomm stock were anxious about the future of Qualcomm (NASDAQ:QCOM). The possibility of high-end chips developed in America falling into the hands of the Chinese government causes concern for the United States government.
Consequently, the semiconductor company Qualcomm stock was down 4.9% as of 2:49 p.m. Eastern Time.
Then What?
The United States Department of Commerce’s Bureau of Industry and Security (BIS) issued a statement on Friday stating that it was “implementing a series of targeted modifications to its export restrictions” to limit China’s “capacity to purchase sophisticated computing chips, create and operate supercomputers, and manufacture advanced semiconductors.”
The Chinese government’s goal of becoming a world leader in artificial intelligence (AI) by the year 2030 has the United States government worried about how China’s military may benefit from this edge.
Qualcomm stock shareholders are concerned that new export restrictions will hurt the semiconductor company’s chip sales. Qualcomm (NASDAQ:QCOM) and other U.S.-based chipmakers are getting caught up in the ongoing tensions between the United States and China. This includes both Qualcomm (NASDAQ:QCOM) and other U.S.-based chipmakers.
What’s Next?
The most recent action taken by the United States government is expected to restrict the ability of certain firms to sell their chips in China. However, American businesses may submit an application for a license to export specific chips and semiconductor manufacturing equipment to China.
It is still unknown how big of a financial effect the export limits will have on Qualcomm (NASDAQ:QCOM); however, Qualcomm stock investors will want to keep a close watch on the company’s following earnings report (which is expected to be announced on November 2) to see whether management has anything to say about it.
Featured Image- Megapixl @ Michaelvi
Author Shariq Khan 
