Why did Qualcomm's shares drop significantly?

Qualcomm's shares dropped significantly because the company announced a revenue forecast that was lower than what analysts had predicted.

What is causing Qualcomm's customers to make fewer handsets?

Customers are making fewer handsets because of industry-wide memory chip shortages, which are increasing component prices and limiting supply.

What new markets is Qualcomm expanding into?

Qualcomm is working to expand into lucrative markets for AI data center components, chips for cars, and personal computers.

Home / Business and Economy / Qualcomm Shares Tumble on Weak Sales Outlook

Qualcomm Shares Tumble on Weak Sales Outlook

5 Feb

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Summary

Qualcomm's revenue forecast missed analyst expectations, causing shares to drop.
Component shortages, particularly memory chips, impact customers' phone production.
New ventures in auto and data centers not yet offsetting core market slowdown.

Qualcomm Shares Tumble on Weak Sales Outlook

Qualcomm's stock experienced a significant drop, falling around 9% in extended trading after the company issued a revenue forecast lower than anticipated by analysts. The projected revenue for the current quarter is between $10.2 billion and $11 billion, with an estimated earnings per share of $2.55, excluding certain items. This falls short of the average analyst estimates of $11.2 billion in revenue and $2.89 per share.

The primary concern highlighted by Qualcomm is the impact of component shortages, specifically memory chips, which are driving up prices and limiting the production of smartphones by its customers. Although demand for high-end phones remains strong, some clients, particularly in China, are expected to produce fewer units due to these supply constraints. CEO Cristiano Amon acknowledged the near-term challenges from these industry-wide issues.