Qualcomm shares slump as weak smartphone chip sales overshadow data-center momentum
FILE PHOTO: A Qualcomm logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Nov 5 : Qualcomm shares dropped over 9 per cent in early trading on Thursday after the company’s smartphone chip sales missed Wall Street estimates, raising concerns that weakness in its core handset business could offset gains from newer growth in areas such as data-center chips.
If losses hold, Qualcomm is on track to shed over $17 billion in market value.
• The chipmaker has been caught between rising memory costs fueled by surging data-center demand and slowing smartphone sales, as AI infrastructure spending absorbs supply across the semiconductor industry
• “Unlike some other companies, we saw the memory shortage coming and prepared for it early,” CEO Cristiano Amon told Reuters
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
• Android demand showed sequential improvement and the company was making solid progress in expanding beyond its handset business, he added
• Qualcomm’s push into data-center and automotive chips has strengthened its long-term growth outlook, but brokerages broadly said the improved visibility was yet to translate into stronger near-term earnings as the Apple revenue roll-off and higher input costs continue to weigh on results
• “We lack conviction in a three-year ramp in a target-rich environment for AI semis, and it’s unclear whether a foundation built on custom chips has legs as the business transitions to merchant solutions,” analysts at Morgan Stanley said
• Quarterly revenue from the chipmaker’s handset division, its largest business, fell 26 per cent to $5.14 billion, pulling chip segment sales 8 per cent lower to $9.02 billion
• Qualcomm trades at 16.78 times forward earnings, well below peers such as MediaTek at 25.41 times and Intel at 33.28 times
• At least 10 brokerages lowered their price targets on the stock after the results, according to LSEG-compiled data
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
