Qualcomm Shares Drop About 7% as Costs Pressure Earnings Outlook

Qualcomm shares fell about 7% in after-hours trading Wednesday after the chipmaker’s December-quarter earnings forecast came in below analyst expectations, with higher component and manufacturing costs weighing on profitability. Qualcomm projected earnings per share of $2.15 to $2.35, putting the midpoint at $2.25 versus the $2.32 analyst average. Its revenue forecast of $10.4 billion to $11.2 billion had a $10.8 billion midpoint, above the $10.55 billion market estimate. Rising costs for components and chip manufacturing are pressuring margins. Demand for memory chips tied to AI data centers has tightened supply.

Source: TokenPost