Qualcomm stock slid 9% on Thursday after the chipmaker issued weak first-quarter guidance following its Q4 financial results released Wednesday. The company projected Q1 adjusted earnings between $2.15 and $2.35 per share, below analysts' estimates of $2.27 per share, with revenue guidance of $10.4 billion to $11.2 billion versus Wall Street estimates of $10.48 billion. The decline led a broader semiconductor sector selloff, with AMD, Micron, Arm, and Intel stocks also falling amid post-election concerns about data center slowdown and artificial intelligence regulation plans from Democrats.
Qualcomm Issues Weak Q1 Guidance After Q4 Earnings
Qualcomm reported Q4 financial results after the bell Wednesday, slightly beating Q4 estimates for earnings. The company projected first-quarter adjusted earnings between $2.15 and $2.35 per share, below analysts' estimates of $2.27 per share. Qualcomm expects Q1 revenue to range from $10.4 billion to $11.2 billion, versus Wall Street estimates of $10.48 billion.
Handset Chip Sales Fall 26% Amid Memory Supply Constraints
Qualcomm's handset chip sales fell 26% to $5.14 billion during the quarter, coming in short of the $5.21 billion StreetAccount estimate. The decline occurred even as the company raised prices in September. Rising memory costs have forced price hikes for devices and hit demand. CEO Cristiano Amon stated, "We don't have a demand issue; it's a supply issue. If I had more supply, I would probably be doing better."
Broader Chip Sector Declines on Data Center Concerns
Semiconductor peers, including AMD, Micron, Arm, and Intel, also declined Thursday, continuing a post-election selloff on fears of a data center slowdown. Democrats indicated plans for artificial intelligence regulation. The memory crunch has also weighed on the broader chip industry.
FAQ
Why did Qualcomm stocks fall 9% on Thursday?
Qualcomm stocks fell 9% on Thursday after the company issued weak first-quarter guidance. The chipmaker projected Q1 adjusted earnings between $2.15 and $2.35 per share, below analysts' estimates of $2.27 per share, with revenue guidance of $10.4 billion to $11.2 billion versus Wall Street estimates of $10.48 billion.
What did Qualcomm's CEO say about the handset chip sales decline?
CEO Cristiano Amon stated that the company does not have a demand issue but rather a supply issue. He said, "If I had more supply, I would probably be doing better." Qualcomm's handset chip sales fell 26% to $5.14 billion during the quarter, missing the $5.21 billion estimate, despite raising prices in September.
