Qualcomm shares slid 9% on Thursday, dragging chip stocks lower after the company issued a weak forecast. Although Q4 earnings slightly beat estimates, guidance called for first-quarter adjusted EPS of $2.15 to $2.35, below the $2.27 consensus, and revenue of $10.4 billion to $11.2 billion versus $10.48 billion expected. Handset chip sales fell 26% to $5.14 billion, short of the $5.21 billion StreetAccount estimate, as rising memory costs led to device price hikes and hurt demand. CEO Cristiano Amon said the company has a supply issue rather than a demand issue. Peers including AMD, Micron, Arm and Intel also declined amid a post-election selloff over fears of a data center slowdown and Democratic plans for AI regulation.
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Qualcommsemiconductorsearningsmidterm elections
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/04/2026 | 200.28 |
| Change that session | -3.10% |
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/04/2026 | 691.95 |
| Change that session | +0.97% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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Qualcomm reported adjusted EPS of $2.17 and revenue of $10.32 billion, both above consensus, but handset revenue fell 26% to $5.14 billion and the 52.4% gross margin missed the 53.2% analysts expected. Automotive revenue jumped 89% to a record, and management said rising wafer, packaging and memory costs are prompting price increases across its products. For Q1 FY2027, Qualcomm guided EPS to $2.15 to $2.35, with a $2.25 midpoint below the $2.32 consensus, while its revenue range of $10.4 billion to $11.2 billion sits above the $10.6 billion consensus midpoint. The company repeated a $5 billion fiscal 2027 data center revenue target. The stock fell 11% to $153.54, while Arm Holdings dropped 7% to $177.80 and Skyworks Solutions slid 2% to $81.53.
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Qualcomm reported revenue above expectations but warned that margins in its chip-design segment will be weaker ahead. The article links the stock decline to supply costs eating into the profit outlook.
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Qualcomm's quarterly adjusted EPS of $2.17 and revenue of $10.32 billion slightly beat LSEG consensus, but the stock slid in extended trading. For the current quarter, Qualcomm forecast EPS of $2.15 to $2.35 and revenue of $10.4 billion to $11.2 billion, while analysts had expected $2.27 and $10.48 billion. Handset chip sales fell 26% to $5.14 billion as rising memory costs pushed up phone prices and hurt demand, though the company said it is seeing sequential growth. Automotive revenue soared 89% to $1.99 billion, IoT revenue rose 4% to $1.88 billion, and QTL licensing revenue dropped 7% to $1.3 billion. Qualcomm expects $5 billion in data center revenue in fiscal 2027, up from $650 million this quarter, and CEO Cristiano Amon said the constraint is supply, not demand.
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