New York, Feb 5, 2026, 17:36 EST — After-hours
- QCOM slipped 8.4% to $136.30 in after-hours trading
- The company pointed to memory supply shortages in phones as a headwind for its near-term outlook
- Investors are focused on whether strong sales of premium handsets and autos will make up for the slump in handset demand
Qualcomm shares dropped 8.4% in after-hours trading Thursday, closing at $136.30. During the regular session, the stock fluctuated between $129.98 and $139.31.
Qualcomm Incorporated late Wednesday projected fiscal Q2 revenue between $10.2 billion and $11.0 billion, with non-GAAP diluted EPS expected to range from $2.45 to $2.65. The company cited ongoing memory supply constraints and pricing pressures affecting several handset customers. CEO Cristiano Amon noted that the handset outlook is weighed down by “industry-wide memory supply constraints,” though demand for premium devices remains strong. (Q4 CDN)
On the earnings call, Amon warned that “Industry-wide memory shortage and price increases are likely to define the overall scale of the handset industry through the fiscal year.” Reuters noted that executives foresee the shortage persisting into 2027, while Counterpoint Research forecasts a 7% drop in advanced smartphone-chip shipments in 2026. Amon also told Reuters that Qualcomm plans to roll out AI chips for data centers in the second half of 2026, aiming for significant revenue in fiscal 2027. (Reuters)
The management team emphasized diversification as a key focus. CFO Akash Palkhiwala noted that demand “is a question of how supply aligns against it” and said Qualcomm won’t provide guidance beyond Q2 due to ongoing uncertainty. CEO Cristiano Amon described the firm as “a completely different company” now, highlighting growth in automotive, PCs, and a letter of intent for a long-term supply deal with Volkswagen Group. (Investing)
Some analysts called it a beat, but with a cautionary note. For Q2, expectations from Visible Alpha pointed to roughly $11.15 billion in revenue and adjusted EPS of $2.88, according to Investopedia. HSBC analysts, however, described it as “difficult to forecast a potential bottom or recovery” in smartphones and lowered their price target, the report added. (Investopedia)
The selloff might swing unpredictably. Should memory supply ease quicker than expected, handset production could pick up, making current guidance seem cautious. On the flip side, if supply tightens, phone makers might pass more costs onto prices and volumes, potentially dragging chip orders lower once more. Qualcomm also faces risks from major clients moving toward in-house chip designs.
Qualcomm’s shares are increasingly tied to factors beyond its control: memory availability and the tempo of phone production. Investors are focused on whether phone makers prioritize scarce components for pricier models, which usually include more Qualcomm chips, and if automotive segment growth continues to accelerate even as smartphone demand falters.
Mobile World Congress in Barcelona, running March 2-5, is the next big date for the mobile world. Investors will zero in on supply-chain updates and production plans ahead of Qualcomm’s upcoming quarterly report. (MWC Barcelona)
