TLDRs:
- Qualcomm shares fall 1.7% after-hours as Trump raises import tariffs, rattling tech investors.
- Memory chip shortages continue to limit smartphone production, pressuring Qualcomm’s revenue outlook.
- Investors are watching Nvidia earnings closely amid tariff-driven tech market volatility.
- Qualcomm dividend record date approaches, keeping shareholder attention despite market uncertainties.
Qualcomm Incorporated (QCOM) saw its stock slide $2.44, or 1.7%, to $140.41 in late Monday trading.
During regular market hours, the chipmaker’s shares fluctuated between $139.66 and $144.01, reflecting heightened volatility in the technology sector. Investors reacted sharply after President Donald Trump announced a temporary increase in U.S. import tariffs, moving the levy from 10% to 15%. The move came in response to a recent Supreme Court decision that limited presidential powers over broad import duties.
Traders moved quickly away from risk assets, including major technology stocks, amid fears that rising tariffs and regulatory uncertainty could further impact the sector. The Dow fell 1.66%, the S&P 500 lost 1.04%, and the Nasdaq dropped 1.13%, signaling widespread caution among investors.
“It’s a classic market reaction to news, sell first, assess later,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management.
Memory Shortages Restrict Growth
Qualcomm is already grappling with a memory chip shortage, which has slowed smartphone production for clients such as Apple and several major Android manufacturers. The shortage prompted Qualcomm to revise its guidance, projecting quarterly revenue between $10.2 billion and $11 billion, with adjusted earnings per share expected in the range of $2.45 to $2.65.
CEO Cristiano Amon acknowledged the challenge, noting, “I just wish we had more memory.”
Analysts, including Bob O’Donnell of TECHnalysis Research, warn that the supply bottleneck could persist for several more quarters, potentially extending into 2027. This ongoing scarcity threatens to constrain demand for Qualcomm’s smartphone chips, even as consumer interest remains strong.
Sector Moves and Nvidia Focus
While Qualcomm lagged behind other chipmakers on Monday, Nvidia (NVDA) managed gains, highlighting the uneven impact of market pressures across the sector. Broadcom and Intel also saw declines, though their losses were less pronounced than Qualcomm’s. Approximately 8.2 million Qualcomm shares changed hands, around 1.5 million below the stock’s 50-day average, indicating muted trading activity amid the heightened volatility.
Investors are now closely monitoring Nvidia’s quarterly earnings, due on February 25. Analysts and traders see Nvidia’s results as a potential indicator of broader trends in the semiconductor industry, particularly as companies navigate the combined pressures of supply constraints and new tariff policies.
Meanwhile, Qualcomm is making strides in custom AI chips, with some analysts noting the company is beginning to gain traction in the sector, although it still trails competitors such as Broadcom.
Dividend Record Date Approaches
Shareholders also have their eyes on Qualcomm’s upcoming dividend. The company will pay a cash dividend of $0.89 per share on March 26, but only investors on record as of the close on March 5 will be eligible. This milestone is likely to keep some buying interest in the stock despite the challenging market environment.
Overall, Qualcomm’s near-term outlook remains cautious. The combination of new tariffs, persistent memory shortages, and upcoming industry earnings reports creates a complex backdrop for the stock. Investors will be watching closely to see whether the company can navigate these pressures while maintaining momentum in its emerging AI chip initiatives and keeping dividend commitments on track.
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