Changes in US stocks | Q4 mobile chip business revenue plummeted 26% Qualcomm (QCOM.US) plummeted by more than 11% before the market

The Zhitong Finance App learned that on Thursday, Qualcomm (QCOM.US) plummeted by more than 11% before the market to $152.81. According to the news, Qualcomm announced its fourth fiscal quarter results. Non-GAAP revenue of US$10.442 billion and earnings per share of US$2.17 slightly exceeded expectations. Qualcomm's fourth-quarter revenue for the mobile chip business was only US$5.14 billion, down 26% year on year, lower than Visible Alpha's estimate of US$5.25 billion.

Qualcomm's first-quarter earnings guidance also disappointed the market. The earnings range per share was 2.15 to 2.35 US dollars, which was lower than the average analysts' average forecast of 2.32 US dollars; the revenue guidance range was 10.4 billion to 11.2 billion US dollars, and the median value was basically the same as analysts' expectations.

Analysts believe that the huge demand for high-bandwidth storage in AI servers has boosted the price of memory chips, which in turn has raised the overall cost of consumer electronics products and squeezed the profit margins of smartphone chip manufacturers such as Qualcomm. The global smartphone market is not doing well. According to Counterpoint Research data, global smartphone shipments fell 20% year on year in the third quarter, hitting a new low in 14 years.

Qualcomm admits that the semiconductor industry is facing a general rise in costs in various aspects such as wafer manufacturing, assembly, testing, advanced packaging, and storage. The company has taken price adjustments, but it is expected that the full impact on gross margin will not be fully reflected until the second half of fiscal year 2027.