Qualcomm Slides 9% After Light Guidance
· Business · CNBC
Qualcomm's stock fell 9% following its light Q1 earnings guidance and a 26% drop in handset chip sales to $5.14 billion, missing the $5.21 billion StreetAccount estimate. The company projected Q1 adjusted earnings of $2.15 to $2.35 per share, below analysts' expectations of $2.27 per share, and revenue between $10.4 billion and $11.2 billion versus Wall Street's $10.48 billion estimate. Chip stocks declined broadly amid post-election fears of a data center slowdown and rising memory costs, with peers including AMD, Micron, Arm, and Intel also falling. OpenAI announced it will end NDAs in new data center policy proposals after election feedback highlighted voter concerns about resource usage.
Why it matters
The sell-off signals investor anxiety over data center demand and supply chain constraints, directly impacting semiconductor investors and companies reliant on memory-intensive applications, while OpenAI's policy shift addresses transparency concerns in hyperscaler infrastructure.
Read the original report — CNBC
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