Qualcomm Shares Drop 9% Following Weak Q1 Guidance and Declining Handset Sales
Qualcomm (QCOM) shares fell 9% after the company reported fourth-quarter results that, despite slightly beating earnings estimates, included weak guidance for the upcoming quarter. The chipmaker projected first-quarter adjusted earnings between $2.15 and $2.35 per share, falling below Wall Street expectations. Additionally, handset chip sales dropped 26% to $5.14 billion, missing analyst estimates. The decline in Qualcomm's stock coincided with a broader sell-off across the semiconductor sector, affecting peers such as AMD, Intel, and Micron. This industry-wide downturn is driven by post-election concerns regarding potential AI regulations from Democrats and fears of a slowdown in data center demand. Furthermore, rising memory costs are impacting device pricing and consumer demand, creating headwinds for chipmakers.
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Topics: data center slowdown earnings report guidance semiconductor industry smartphone market
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