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Market Incident

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AI compiled from Infoway · 6 analyzed stories

Qualcomm shares slide over 7% in afterhours as smartphone weakness clouds growth push

Qualcomm fell short of Wall Street estimates for fourth-quarter smartphone chip sales amid sluggish demand and declining Apple-related revenue. Its handset-unit revenue fell 26% to $5.14 billion, pulling chip-segment revenue down 8% to $9.02 billion. A better-than-expected data-centre revenue forecast did not offset investor focus on its core business decline.

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What happened

Qualcomm reported that quarterly handset revenue fell 26% to about $5.14 billion, while revenue from its chip segment fell 8% to about $9.02 billion. Its shares dropped sharply on Thursday, and a broad semiconductor index also fell. Growth in automotive and internet-of-things revenue only partly offset the handset decline.

Global impact / market context

Handsets remain a major part of Qualcomm’s chip business, so weaker sales pulled down segment revenue and its reported earnings margin. This can make investors more cautious about whether growth in other areas can offset the weakness. Other chip shares also fell, showing the move reached beyond Qualcomm.

What to watch

  1. Check Qualcomm’s next handset revenue update; it will show whether the decline continues or eases.
  2. Check whether automotive and internet-of-things revenue keeps rising; it only partly offset the handset decline in the reported figures.
  3. Check whether the broader semiconductor index continues to fall; that would show whether weakness remains widespread across chip shares.

Affected assets

  • Qualcomm Incorporated

Evidence