Qualcomm’s Stock Falls After It Warns Chip Margins Are Getting Squeezed

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1. 34m ago

   Qualcomm Shares Slump After Tepid Forecast And Rising Costs

   Qualcomm shares fell between 6% and 10% following a weak profit forecast and warnings of rising semiconductor input costs. The drop occurred even though the company posted fourth-quarter revenue of $10.4 billion that topped analyst estimates. Executives pointed to a memory shortage, declining smartphone sales, and falling Apple handset revenue as major pressures squeezing chip margins. While automotive and data center businesses showed strong growth, investors focused heavily on the weak earnings guidance and higher supply costs.

   Why it matters

   Qualcomm is currently managing a transitional phase where its traditional reliance on smartphone chips faces headwinds from component shortages and softening handset revenue. The company is attempting to pivot toward automotive and data center markets to offset these declines. However, rising manufacturing expenses have directly threatened profitability, triggering immediate negative reactions in the stock market.

   What is confirmed

   • Qualcomm shares fell between 6% and 10% following its earnings and margin warnings.
   • The company reported quarterly revenue of $10.4 billion, beating analyst estimates.
   • Qualcomm executives warned that rising manufacturing and supply costs are squeezing chip margins.
   • Smartphone chip sales missed estimates and faced pressure from a memory shortage.

   Still unconfirmed

   • Qualcomm provided a chip margin guide of 20 to 22 percent and an earnings per share midpoint of $2.25.

   What to watch next

   • Future quarterly earnings reports to track the actual impact of rising manufacturing costs on chip margins.
   • Performance updates on Qualcomm's automotive and data center growth to see if they offset smartphone declines.
   • Signs of easing or persistence in the memory shortage affecting handset sales.
   Sources used for this update (16)

   1. stocktwits.com — Stocktwits - Stock Market Live Quotes, Social Community...
   2. www.marketbeat.com — Top Biotech Stocks To Research - October 14th | MarketBeat
   3. www.zerohedge.com — Futures Rise, Oil Slides As Iran's Supreme Leader Talks Peace And Shrugs Off Ras Tanura Attack
   4. CNBC — Qualcomm stock drops 6% on weak earnings forecast as memory shortage weighs on smartphone sales
   5. Reuters — Qualcomm's smartphone chip sales miss estimates, shares fall
   6. Bloomberg.com — Qualcomm Gives Tepid Profit Outlook After Supply Costs Rise
   7. Barron's — Qualcomm’s Stock Falls After It Warns Chip Margins Are Getting Squeezed
   8. www.techflowpost.com — From a Single PDF to $6.3 Billion: How North Korean Hackers Took Over the Crypto World?
   9. Qualcomm — Qualcomm Earnings Release Available on Company's Investor Relations Website
   10. shattered.io — Qualcomm Slides 6%+ as Costs Squeeze Chip Margins [2026]
   11. www.home.saxo — Market Quick Take - Democrats take control of House and Senate - 4 November 2026 | Saxo Bank
   12. finance.yahoo.com — Qualcomm stock slumps over 10% on margin headwinds, rising costs
   confidence 95%