Key Stats for Qualcomm Stock
- Price change for Qualcomm stock: -8.5%
- $QCOM Share Price as of Feb. 5: $136
- 52-Week High: $206
- $QCOM Stock Price Target: $187
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Qualcomm (QCOM) stock plunged as much as 8.5% yesterday after the chipmaker issued disappointing guidance for the current quarter, blaming a global memory shortage that’s squeezing smartphone manufacturers.
The company beat earnings expectations for its fiscal first quarter, posting adjusted earnings of $3.50 per share versus the $3.40 expected and revenue of $12.25 billion versus $12.16 billion. But investors quickly shifted their focus to the weak outlook ahead.
- For the current quarter ending in March, Qualcomm expects revenue between $10.2 billion and $11 billion, well below Wall Street’s forecast of $11.11 billion.
- Earnings per share are projected at $2.45 to $2.65, significantly under the $2.89 analysts expected.
CEO Cristiano Amon made it clear the problem isn’t demand—it’s supply. “It’s 100% related to memory,” Amon said on the earnings call.
The issue stems from memory chip manufacturers redirecting production capacity away from smartphones and consumer electronics to focus on high-bandwidth memory (HBM) for AI data centers.
This shift has created an industry-wide shortage of DRAM for smartphones.
Qualcomm’s smartphone customers, especially in China, are responding by cutting their handset build plans and reducing chipset inventory.
The company guided to just $6 billion in handset chip revenue for the March quarter, down about 13% year over year. CFO Akash Palkhiwala explained that smartphone makers are taking a “cautious approach” given the uncertain memory supply situation.
Amon warned that memory availability will likely define the size of the smartphone market for the entire fiscal year.
“The handset industry will be constrained by the availability and pricing of memory, particularly DRAM,” he said.
Some memory suppliers have indicated they can only satisfy 50% to 70% of demand, with shortages potentially extending into 2028.
The bright spot in Qualcomm’s report was automotive, which posted another record quarter, with revenue reaching $1.1 billion, up 15% year over year. The company expects automotive revenue growth to accelerate to over 35% in the current quarter as new design wins ramp up.
See analysts’ growth forecasts and price targets for Qualcomm stock (It’s free!) >>>
What the Market Is Telling Us About Qualcomm Stock
The sharp drop in Qualcomm stock shows investors are deeply concerned about how long this memory shortage will last and its impact on the company’s core smartphone business.
While Qualcomm executives tried to reassure the market that underlying demand remains strong, Wall Street is clearly worried about near-term revenue growth.
The memory shortage is particularly problematic because it’s largely out of Qualcomm’s control. The company doesn’t buy memory itself—its smartphone customers do.
So Qualcomm is essentially at the mercy of how memory suppliers allocate production between AI data centers and consumer electronics. And right now, data centers are winning that battle.
Investors are also likely concerned about competitive dynamics. Companies with vertically integrated memory operations, such as Samsung, may weather this shortage better than competitors that rely on external memory suppliers.
This could shift market share in ways that don’t favor Qualcomm stock in the near term.
The one silver lining is that premium and high-tier smartphones tend to be more resilient during supply constraints.
Amon noted that smartphone makers will likely prioritize premium devices, which is where Qualcomm has its strongest positioning. The company maintained its roughly 75% share of Samsung’s upcoming premium flagship devices.
For now, Qualcomm stock is taking a beating as the market digests the reality that memory shortages could constrain growth for multiple quarters.
Until memory supply stabilizes, the company’s smartphone business—which accounts for the bulk of its revenue—will remain under pressure.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does QCOM Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
