Qualcomm slides 9% after earnings, leading postelection chip stock sell-off

Qualcomm shares fell 9% on Thursday after its forecast for the current quarter came in weaker than analysts expected, despite a slight earnings beat for the previous quarter. The fall led declines among semiconductor stocks, amid wider concerns about data centre demand, proposed AI regulation and memory shortages.

Qualcomm forecast adjusted earnings of $2.15 to $2.35 per share, below the $2.27 analyst estimate, and revenue of $10.4 billion to $11.2 billion, compared with a $10.48 billion estimate. Its handset chip sales dropped 26% to $5.14 billion, below forecasts, as higher memory costs drove up phone prices and weighed on demand. Chief executive Cristiano Amon said the company’s constraint was supply rather than demand.