TLDRs:
- Qualcomm stock rises modestly as investors monitor memory supply pressures and handset production.
- Market pause ahead of Presidents Day sees QCOM maintain stability despite sector-wide chip shortages.
- Upcoming Samsung Galaxy launch adds focus to Qualcomm’s premium Android chip exposure.
- Data-center AI chip plans remain on track, insulating Qualcomm from current memory constraints.
Qualcomm (NASDAQ: QCOM) closed Friday at $140.70, marking a 1.6% gain, as investors positioned themselves ahead of Tuesday’s trading session following the Presidents Day market pause.
Roughly 13.1 million shares changed hands during Friday’s session, reflecting steady but cautious activity among tech investors. While large-cap tech has been a consistent anchor on the broader market, Qualcomm managed to firm slightly even amid lingering memory-chip constraints.
The slight uptick comes after the company reported second-quarter guidance that fell short of Wall Street expectations earlier this month. Qualcomm projected revenue between $10.2 billion and $11 billion, with adjusted earnings per share of $2.45 to $2.65.
While these numbers disappointed some analysts, CEO Cristiano Amon expressed confidence in the underlying business, noting, “I’m very happy with the business, I just wish we had more memory.”
Chip Shortages Continue to Weigh
Qualcomm’s stock movement mirrors broader industry challenges. Executives have warned that tight memory supply could extend through the remainder of the fiscal year and into 2027, with other chipmakers feeling similar pressures.
Arm CFO Jason Child emphasized that the shortage is not unique to Qualcomm, noting, “Unfortunately, I think that the whole sector is impacted by memory.”
Analysts at Counterpoint Research forecast a 7% decline in advanced smartphone chip shipments for 2026, underscoring the sector-wide hurdles.
Despite these challenges, Qualcomm’s upcoming data-center AI chip releases, slated for the second half of 2026, are expected to remain unaffected. Investors appear to be factoring in this resilience while weighing potential near-term risks.
Market Awaits Smartphone Demand Signals
With the U.S. markets closed Monday, traders are carefully watching for signs that smartphone manufacturers may ramp up orders rather than continue cutbacks. Any further memory supply squeezes or price increases could hamper handset production, potentially dampening Qualcomm’s sales in the handset segment.
The Philadelphia Semiconductor Index, which tracks major chipmakers, saw a modest 0.66% gain Friday, hinting that chip stocks could maintain some stability despite ongoing supply constraints. Analysts expect trading to resume Tuesday with a sharper focus on memory supply updates and early indicators of manufacturer activity.
Samsung Launch Adds Investor Focus
Looking further ahead, the spotlight turns to Samsung’s Galaxy Unpacked event on February 25 in San Francisco. The launch of new flagship phones will serve as a key gauge of premium Android demand, directly impacting Qualcomm’s exposure in smartphone chips. Investors will likely use this event as a signal for handset production trends and potential revenue upside in Qualcomm’s mobile segment.
As the market reopens, Qualcomm’s slight gains reflect cautious optimism. While memory shortages pose an ongoing challenge, the company’s diversified chip portfolio, particularly in AI data-center chips, provides a buffer against broader industry volatility. Investors appear to be balancing near-term risks with long-term growth opportunities, keeping QCOM stock on a steady course amid uncertain market conditions.
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