New York, Feb 4, 2026, 19:03 EST — After-hours
Qualcomm Incorporated’s shares swung sharply in after-hours trading Wednesday after the chipmaker flagged that its “near-term handsets outlook is impacted by industry-wide memory supply constraints” and offered a softer view for the current quarter. The stock hit $134 before settling at $148.89. Qualcomm reported a record quarterly revenue of $12.252 billion and non-GAAP earnings per share (EPS) of $3.50. For fiscal second quarter, the company guided revenue between $10.2 billion and $11.0 billion, with non-GAAP EPS ranging from $2.45 to $2.65. The non-GAAP figures exclude items like stock-based compensation. Qualcomm also confirmed it completed the acquisition of Alphawave Semi. (SEC)
Qualcomm CEO Cristiano Amon told Reuters the forecast miss was solely due to a memory-chip shortage impacting smartphone clients. “I’m very happy with the business — I just wish we had more memory,” he said, as Chinese phone makers (OEMs) cut back inventories. Bob O’Donnell, chief analyst at TECHnalysis Research, warned the “worldwide memory crunch” could linger for “the next several quarters.” Counterpoint Research projects a 7% drop in advanced smartphone chip shipments in 2026 amid rising memory prices. Qualcomm is pushing beyond phones into PCs, automotive, and data centers, reacting to Apple and Samsung developing more in-house chips and MediaTek ramping up Android competition. Amon added the memory shortage won’t slow the release of Qualcomm’s AI data-center chips, slated for H2 this year, with meaningful revenue expected in fiscal 2027. Qualcomm shares have fallen over 11% so far in 2026. (Reuters)
This matters now because memory remains a tight bottleneck. When storage chips grow scarce and more expensive, handset makers can’t simply “work around it” through software fixes; they either cut shipments or alter their product mix, directly impacting chip orders.
Qualcomm’s position near the premium smartphone supply chain means inventory shifts hit it fast. When OEMs cut back on production, chipmakers are the first to notice. Then the debate kicks off—demand, supply, or a mix of both?
The memory shortage complicates things for investors, muddying the true picture of demand. Consumers might still crave flagship phones, yet limited component supplies force lower launch volumes and push upgrade cycles further out.
Qualcomm’s expansion into cars and data centers aims to steady that volatility. It provides some relief, but the short-term reality remains: handset volumes and mix still dictate the quarter-to-quarter swings.
The downside is straightforward: if memory bottlenecks and pricing pressures persist, OEMs might slash production once more, making Qualcomm’s forecasts look overly optimistic. While the premium segment holds up better than mid-range, it still feels the pinch when costs climb.
Another, more persistent risk is tougher to quantify: customers gradually bringing silicon design in-house or switching suppliers piece by piece. These changes usually don’t happen all at once—until suddenly, they do.
Traders will be eyeing Thursday’s regular session to see if the after-hours action holds and how the stock performs when liquidity comes back. The bigger issue: is the handset slowdown just a one-quarter pause, or the beginning of a more prolonged reset?
Investors are pushing for clearer signals on when customers will halt inventory drawdowns and resume ordering. They also want to see if the data-center roadmap shifts from being mere talk to actual booked revenue.
The next key event on the calendar is the premium smartphone launch cycle at Mobile World Congress in Barcelona, scheduled for March 2-5. This will offer a clear glimpse of upcoming trends in high-end Android devices and component supply. (Mwcbarcelona)
