Qualcomm reported its Q4 financial results, slightly surpassing earnings estimates but providing a disappointing outlook for the first quarter. The company anticipates adjusted earnings between $2.15 and $2.35 per share, which is below the consensus estimate of $2.27.
Additionally, Qualcomm expects first-quarter revenue to fall between $10.4 billion and $11.2 billion, slightly below Wall Street's expectation of $10.48 billion.
This forecast has negatively impacted not only Qualcomm's stock but also led to declines in other semiconductor companies such as AMD, Micron, Arm, and Intel, as investors react to fears of a slowdown in data center demand and potential regulatory challenges in artificial intelligence.
Qualcomm's handset chip sales experienced a significant 26% drop to $5.14 billion, missing the $5.21 billion estimate, despite the company raising prices in September. CEO Cristiano Amon emphasized that the issue is not demand but rather supply constraints, indicating that better supply could lead to improved performance