✎ Contributed by Ty Griffin
Qualcomm shares fell sharply after the chipmaker issued a weaker-than-expected outlook despite slightly exceeding fourth-quarter earnings estimates. The company forecast adjusted first-quarter earnings of $2.15 to $2.35 per share and revenue of $10.4 billion to $11.2 billion.
Handset chip sales declined 26% to $5.14 billion, missing expectations as higher memory costs contributed to smartphone price increases and constrained device supply. The broader semiconductor sector also retreated as investors reacted to concerns about a potential data-center slowdown and increased artificial intelligence regulation following the midterm elections.
Market Reaction
- Qualcomm Inc. (NASDAQ: QCOM): $153.32, down $19.87 (11.47%)
- Advanced Micro Devices Inc. (NASDAQ: AMD): $417.40, down $71.38 (14.60%)
- Intel Corp. (NASDAQ: INTC): $54.64, down $3.62 (6.22%)
- Arm Holdings PLC (NASDAQ: ARM): $169.57, down $22.23 (11.59%)
- Micron Technology Inc. (NASDAQ: MU): $695.09, down $100.08 (12.59%)
Investor Sentiment
Qualcomm’s results highlighted the difficulty of offsetting weakness in smartphones with growth from newer businesses such as data-center processors. Management characterized the handset decline as a supply constraint rather than a demand problem, but investors remain concerned that elevated memory prices could continue limiting device production and sales.
The widespread semiconductor sell-off reflects broader uncertainty surrounding AI infrastructure spending, regulation and component shortages. Investors will monitor data-center capital expenditures, memory availability and smartphone shipment trends for signs that the industry’s growth outlook can stabilize after the sharp postelection decline.
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