The Chips Are Down, and Qualcomm Reports Earnings July 29. Trade the Volatility With Leveraged and Inverse ETFs

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The semiconductor sector is navigating one of its most volatile stretches in recent memory. A wave of capital expenditure warnings from industry leaders has triggered a broad-based sell-off that has hit chip stocks across the board, and Qualcomm (QCOM) has not been spared, down over 15% in the past month as of July 21, 2026.¹^,2 

The company reports fiscal Q3 2026 earnings on July 29 as its core handset business continues to generate less revenue than a year ago, and earnings are expected to decline sharply.² At the same time, its push into AI data centers and automotive computing is still early, and the market's next read on Qualcomm's progress could move the stock in either direction.³

For active traders looking to trade that volatility, the Direxion Daily QCOM Bull 2X ETF (QCMU) and the Direxion Daily QCOM Bear 1X ETF (QCMD) offer leveraged long and inverse exposure to QCOM in a single trade. 

QCOM Stock Performance

Qualcomm has several strategic advantages heading into July 29, but there are potential pitfalls ahead as well. The company's handset business has been under pressure, while its AI and automotive ambitions are still early contributors to revenue, making this one of the more exciting earnings reports of the quarter.

QCOM Bullish Indicators

• AI and data center pivot materializing: CEO Cristiano Amon has stated that a hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.⁴ JPMorgan has projected data center revenue could reach more than $3 billion by fiscal 2027.⁵ Qualcomm has also entered a 6G development consortium alongside Amazon, Google, and Samsung, and formed a strategic partnership with Micron Technology for next-generation automotive chips.⁵
• Consistent earnings outperformance: Qualcomm has beaten or met Wall Street's EPS estimates in each of its last four quarters. Despite revenue declining 3% year-over-year in Q2 fiscal 2026, the company beat estimates and the stock surged more than 15% the following session.²,⁴
• Improving sentiment: Analyst consensus just moved from Hold to Moderate Buy over the past month, reflecting improving confidence in Qualcomm's longer-term positioning.⁶
   

QCOM Bearish Indicators

• Earnings expected to decline sharply: Wall Street is projecting Q3 fiscal 2026 EPS of $1.54, down approximately 33% year-over-year from $2.29 in the same period last year.² The handset market, which remains Qualcomm's largest revenue segment, has been soft, and revenue declined 3% year-over-year in the most recent quarter.⁴
• Semiconductor sector under broad pressure: QCOM fell 4.1% on July 16 as part of a sector-wide selloff triggered by TSMC's announcement of higher capital expenditure guidance and margin compression warnings.¹ The read-through for the sector is that scaling AI manufacturing capacity is becoming increasingly expensive, and investors are repricing semiconductor multiples in response.
• AI data center revenue still unproven: While Qualcomm's AI data center narrative helped drive the stock to a 52-week high of $259.92 earlier this year, the company has yet to report meaningful revenue from that segment.³ The gap between the stated ambition and the reported results creates meaningful risk around how the market will interpret guidance on July 29.
   

Wall Street Is Cautiously Optimistic

Of 34 analysts covering QCOM, the consensus has recently moved to Moderate Buy from Hold, with a mean 12-month price target of $223.07 and a high target of $314.⁶

Wall Street is projecting Q3 fiscal 2026 EPS of $1.54, down approximately 33% year-over-year from $2.29, with fiscal year 2026 EPS of $7.97.² Qualcomm reports fiscal Q3 2026 earnings after market close on July 29, 2026, per the company's confirmed schedule.⁷

Trade QCOM Volatility With QCMU and QCMD

Traders now have a direct tool to trade this volatility on either side without managing margin requirements or multiple derivative positions. The Direxion Daily QCOM Bull 2X ETF (QCMU) and the Direxion Daily QCOM Bear 1X ETF (QCMD) each track the common shares of QUALCOMM Incorporated (QCOM).⁸

• Direxion Daily QCOM Bull 2X ETF (QCMU) targets 200% of the daily performance of QCOM. When QCOM rises 1%, QCMU targets a 2% gain before fees. When QCOM falls 1%, QCMU targets a 2% decline before fees.
• Direxion Daily QCOM Bear 1X ETF (QCMD) targets -100% of the daily performance of QCOM. When QCOM falls 1%, QCMD targets a 1% gain before fees. When QCOM rises 1%, QCMD targets a 1% decline before fees.

Both funds reset their leverage daily and are designed for active traders who monitor their positions.

Will Qualcomm Deliver on July 29?

Qualcomm enters its July 29 earnings report with a stock well off its highs, an EPS expected to decline, and an AI data center narrative that the market is watching closely for proof of delivery. Whether the report becomes the catalyst that reboots QCOM or confirms the pressure is ongoing, the Direxion Daily QCOM Bull 2X ETF (QCMU) and the Direxion Daily QCOM Bear 1X ETF (QCMD) give active traders leveraged exposure to that move without managing complex options strategies or multiple orders.

Sources

¹https://www.barchart.com/story/news/3325114/lattice-semiconductor-amd-and-qualcomm-shares-are-falling-what-you-need-to-know 

² https://www.barchart.com/stocks/quotes/QCOM/earnings-estimates 

³ https://www.barchart.com/stocks/quotes/QCOM 

⁴ https://www.barchart.com/story/news/3164893/qualcomms-q3-2026-earnings-what-to-expect 

⁵https://www.barchart.com/story/news/2428029/why-1-veteran-analyst-firm-hiked-its-qualcomm-stock-price-target-for-2026 

⁶ https://www.barchart.com/stocks/quotes/QCOM/analyst-ratings 

⁷https://www.barchart.com/story/news/3295978/qualcomm-schedules-third-quarter-fiscal-2026-earnings-release-and-conference-call 

⁸https://www.direxion.com/product/daily-qcom-bull-and-bear-leveraged-single-stock-etfs

Past performance is not indicative of future results.

Investing in the funds involves a high degree of risk. Unlike traditional ETFs, or even other leveraged and/or inverse ETFs, these leveraged and/or inverse single-stock ETFs track the price of a single stock rather than an index, eliminating the benefits of diversification. Leveraged and inverse ETFs pursue daily leveraged investment objectives, which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying stock’s performance over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. The Funds will lose money if the underlying stock’s performance is flat, and it is possible that the Bull Fund will lose money even if the underlying stock’s performance increases, and the Bear Fund will lose money even if the underlying stock’s performance decreases, over a period longer than a single day. Investing in the Funds is not equivalent to investing directly in QCOM.

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund’s prospectus and summary prospectus call 866-476-7523 or visit our website at direxion.com. A Fund’s prospectus and summary prospectus should be read carefully before investing.

QUALCOMM Incorporated Investing Risk – Issuer-specific attributes may cause an investment held by the Fund to be more volatile than the market generally. QCOM faces risks associated with: concentration of revenues amongst a small number of customers; vertical integration; concentration of business in China; requirements to grow the business and add new products and services; inability to profit from acquisitions and strategic transactions; limitations in supply chain and in demand for products and services; among other risks.

Semiconductor Industry Risk – Semiconductor companies may face intense competition, both domestically and internationally, may have limited product lines, markets, financial resources or personnel and may face risks related to the availability of materials.

Information Technology Sector Risk — The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation, and competition, both domestically and internationally, including competition from competitors with lower production cost.

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