JP Morgan downgraded Qualcomm to "underweight" from "neutral". The primary reason was rising litigations costs are cutting operating margins. This may go one for some time.

The move does not reflect rising competition from WiMax and the possible end to its contract with Qualcomm’s largest customer, Nokia.

But, that may already be priced into the stock.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.