Qualcomm Shares Drop 7% on Weaker-Than-Expected Profit Outlook
Memory shortages drive up smartphone costs and pressure chipmaker revenue
Qualcomm shares fell 7% after the company issued a quarterly profit forecast that missed analyst expectations. The firm projects earnings per share between $2.15 and $2.35. Revenue is expected to range from $10.4 billion to $11.2 billion.
The poor performance reflects turbulence in the smartphone sector. Rising memory costs forced device manufacturers to hike consumer prices. This shift dampened global demand and directly impacted the company's chip sales.
Handset chip sales dropped 26% during the period to $5.14 billion. The company expects the device market to remain flat in 2027. Despite this, Qualcomm notes evidence of recovery in Android device shipments across China.
Management is now focusing on diversifying revenue beyond mobile phones. The automotive division saw 89% annual growth, reaching $1.99 billion. The data center segment is also a key bet for the coming years.
Supply shortages are limiting the company's progress in new technological frontiers. CEO Cristiano Amon stated that the current issue is not a lack of demand but rather supply capacity. The company is looking to expand its presence in artificial intelligence infrastructure.
Spotted an error? Write to suporte@criptoico.com.br.
