Qualcomm Faces Worst Day Since 2020 as Chips Crater

What happened

Qualcomm shares fell more than 9% in early Thursday trading after its smartphone-chip business missed expectations. Handset revenue dropped 26% to $5.14 billion, while total chip-segment sales declined 8% to $9.02 billion. The broader semiconductor index also fell as much as 11%.

Confirmed

Global impact / market context

Handset weakness is reducing Qualcomm’s sales while higher memory costs and the gradual loss of Apple modem revenue add pressure. Automotive and data-center chips are growing, but the article says they are not yet large enough to make up the shortfall, leaving near-term results dependent on handsets.

Analyst inference

The selloff extended beyond Qualcomm: semiconductor shares fell broadly, with the sector index down as much as 11% and the Nasdaq down as much as 5%. The article links this pressure to doubts about continued AI infrastructure spending and possible limits on new data-center construction.

Analyst inference

What to watch

1. Watch whether Qualcomm handset revenue stabilizes in coming reports; continued declines would keep pressure on chip sales until newer automotive and data-center businesses grow enough to offset them. Analyst inference
2. Track whether automotive and data-center chip growth becomes large enough to offset handset weakness, higher memory costs, and the gradual loss of Apple modem revenue. Analyst inference
3. Watch for developments in possible U.S. limits on new data-center construction, which could constrain AI infrastructure spending and add pressure across semiconductor companies. Analyst inference

Evidence

• gurufocus.com