New York, Feb 5, 2026, 10:43 EST — Regular session underway.
Qualcomm Incorporated shares dropped $14.21, or 9.5%, to $134.68 in Thursday’s morning session, deepening losses from after-hours trading following a wary forecast linked to tight memory supply. The stock hit a low of $129.98, as the iShares Semiconductor ETF slipped 1.5%.
The selloff hits a well-known weak spot in the handset supply chain: memory components paired with processors inside phones. When device makers struggle to lock down enough memory, handset shipments drop, dragging chip orders down with them.
This is crucial since Qualcomm’s guidance — its revenue and profit outlook — usually influences the wider smartphone chip sector. Investors have been bullish on AI-related semiconductors, yet the consumer device segment reacts sharply whenever inventories are trimmed.
Late Wednesday, Qualcomm, based in San Diego, California, projected fiscal second-quarter revenue between $10.2 billion and $11 billion, with adjusted earnings of $2.45 to $2.65 per share—both figures falling short of Wall Street’s expectations. The chipmaker cited a global memory supply shortage that’s weighing on mobile phone sales. CEO Cristiano Amon told Reuters the forecast miss stems from the memory crunch, adding, “I’m very happy with the business – I just wish we had more memory.” CFO Akash Palkhiwala noted the company anticipates around $6 billion in mobile phone chip sales this quarter. Qualcomm also spotlighted a new AI data center chip line, with Saudi sovereign-wealth-fund-backed AI firm Humain as a customer, which Amon said should remain unaffected by the memory shortage. 1
On Thursday, Amon highlighted that memory shortages and rising prices are set to “define the overall scale of the handset industry through the fiscal year.” Qualcomm executives cautioned this squeeze could last into 2027. Arm, which provides the architecture behind many smartphone chips, warned its royalty revenue might take a hit of up to 2% due to the same issues. eToro analyst Zavier Wong noted the results “largely reflect broader industry trends rather than Qualcomm-specific issues.” 2
After the forecast, analysts adjusted their targets. MarketScreener, referencing MT Newswires, noted that Bank of America downgraded Qualcomm to neutral. Several firms, including Evercore ISI, Citigroup, Cantor Fitzgerald, and Mizuho, also cut their price targets. 3
Qualcomm directed investors to its earnings release posted on its investor relations website, adding that the same material would be filed with the U.S. Securities and Exchange Commission via a Form 8-K. 4
Qualcomm has long aimed to expand its growth beyond just phones, pushing deeper into emerging chip markets. Still, days like today remind investors just how much the handset cycle continues to influence its stock.
The downside is clear-cut. If memory remains tight or costs climb, phone makers might slash production once more. Qualcomm could then be forced to lower its forecasts again, following earlier cuts this week.
Mobile World Congress in Barcelona from March 2-5 is the next big date to watch. The handset supply chain typically drops hints about upcoming build plans there. Traders will be on alert for shifts in memory availability or smartphone demand talk that might either back up Qualcomm’s cautious stance or ease concerns. 5
