AI and chip stocks slide, with Qualcomm facing its worst day since 2020

What happened

AI and semiconductor stocks fell sharply on Thursday, with the Philadelphia Semiconductor Index dropping about 7%. Qualcomm opened 13% lower after smartphone chip sales weakened, and its fourth-quarter handset revenue fell 26%. Advanced Micro Devices, Broadcom, Nvidia and Taiwan Semiconductor Manufacturing also declined.

Confirmed

Global impact / market context

Qualcomm’s handset revenue decline shows how higher memory prices can pressure phone demand and chip sales. If that weakness persists, it could reduce revenue for suppliers tied to handsets, while broad selling despite some strong reports suggests company results alone may not be supporting sector share prices.

Analyst inference

The article describes a sector-wide fall rather than a decline confined to Qualcomm: chipmakers, major cloud companies and some equipment suppliers also dropped. At the same time, SiTime and MACOM reported results above estimates, showing that strong company figures did not prevent shares from falling.

Confirmed

What to watch

1. Watch whether handset demand and Qualcomm’s handset revenue continue to weaken as memory prices rise; further declines could put pressure on chip suppliers’ sales. Analyst inference
2. Check upcoming company reports for revenue, earnings and outlook against expectations; the article says SiTime and MACOM beat estimates, while their shares still fell. Analyst inference
3. Track whether semiconductor and cloud-company share declines continue beyond Thursday; the article reports falls across both groups but gives no later trading data. Analyst inference

Evidence

• seekingalpha.com