New York, February 9, 2026, 12:48 (EST) — Regular session
Qualcomm (QCOM) clawed back nearly 1% Monday, recouping some ground after last week’s dip, as the company pointed to a 2-nanometre chip design “tape-out” driven out of India. Shares were up 0.9% at $138.64 around midday on the Nasdaq. Executives called the tape-out a key step, with manufacturing to be handled overseas. Tape-out marks the point when a chip’s design gets finalized by engineers and shipped to the foundry for production. 1
This shift follows a warning from Qualcomm out of San Diego just days ago: the chipmaker expects March-quarter revenue and profit to undershoot forecasts. The culprit, according to the company, is a squeeze on memory chip supplies that’s been choking smartphone output—China’s been hit particularly hard. “I’m very happy with the business – I just wish we had more memory,” CEO Cristiano Amon told Reuters, noting device makers are working through slimmer inventories as parts run short. Qualcomm is looking for revenue between $10.2 billion and $11 billion, with adjusted earnings per share of $2.45 to $2.65. The company also noted it faces added strain as large clients like Apple and Samsung ramp up their own chip development. 2
Chip names showed some strength, the Philadelphia Semiconductor Index climbing roughly 1.7%. That’s key for Qualcomm at this stage, since its shares have become a readout on sentiment for smartphone builds. Any whiff of a wider move in the sector tends to draw in buyers looking for an entry point. 3
Qualcomm Technologies has tapped its engineering hubs in Bengaluru, Chennai, and Hyderabad for the 2nm tape-out, a milestone the company highlighted during Indian minister Ashwini Vaishnaw’s visit. Srini Maddali, senior vice president of engineering at Qualcomm India, pointed to the achievement as proof of the team’s capabilities, saying it demonstrates they can “deliver at a global standard.” 4
Shashi Reddy, also a senior vice president of engineering, emphasized in a separate statement to ETTelecom that India’s R&D teams are involved in everything from architecture and software to optimizing AI use cases. He described India as “integral” to Qualcomm’s engineering plans worldwide, especially as the firm ramps up efforts to bring more computing and AI capabilities directly onto devices. 5
Analysts say the immediate challenge is how well Qualcomm can gauge short-term handset demand, rather than any doubts about its tech down the road. Stacy Rasgon at Bernstein still sees upside—he stuck with his Outperform rating and $200 price target after earnings, Barron’s noted, though he flagged the memory glut clouding this quarter. 6
But the risk remains front and center: both executives and analysts flag the possibility that the memory crunch drags on through 2027. That would keep a lid on smartphone production and put pressure on suppliers with mobile chip exposure, such as Arm. For Qualcomm, should the bottleneck persist, it’ll need to lean harder on its auto and other non-smartphone segments to make up for the drag in handset sales. 7
Early March brings the next major checkpoint: Mobile World Congress in Barcelona, set for March 2–5. It’s where handset manufacturers and chip suppliers usually roll out their spring lineups. Investors have their eye on memory prices for any sign of easing, plus clues on whether smartphone orders in China are leveling out. 8
