Qualcomm stock drops 5% on weak earnings forecast as memory shortage weighs on smartphone sales
Qualcomm's stock fell 5% after reporting Q3 earnings that beat estimates but issued a weaker forecast. EPS was $2.17 vs. $2.16 expected, and revenue was $10.32B vs. $10.11B expected. Q4 guidance was below estimates due to smartphone sales declines from memory shortages. Automotive revenue surged 89% to $1.99B, and IoT revenue grew 4% to $1.88B. CEO Amon highlighted growth in data center and AI infrastructure.
How this was made
The 30-second read
Why it matters
The earnings miss and guidance cut suggest short‑term downside, but diversification into data‑center and automotive could provide upside if execution improves.
Market read
First report of Qualcomm's Q4 results and FY2027 guidance, driving a 5% stock decline and influencing semiconductor sector sentiment.
What to watch
The 89% YoY rise in automotive revenue may offset smartphone weakness over the longer term.
Background
Qualcomm is a leading supplier of smartphone modems and is expanding into AI data‑center and automotive chips.
Ticker impact
Qualcomm reported earnings that missed guidance and issued weaker FY2027 guidance, causing a 5% stock drop.
likely pressure as the market prices in the weaker earnings outlook and guidance cut.
The article provides the first report of Qualcomm's quarterly results and FY2027 guidance, both materially below expectations, which directly moved the stock.
Market effects
Weak smartphone demand may pressure other handset chip makers and related supply chains.
U.S. tech sector sentiment could dip in the short term.
Potential ripple to global AI and data‑center chip markets as Qualcomm signals slower growth.
Counterpoint
If data‑center revenue accelerates faster than guidance, the stock could rebound on growth narrative.
Key entities
- ExecutiveCristiano Amon
CEO of Qualcomm, provided guidance and comments on supply constraints.
