Street View: Qualcomm caught in memory chip squeeze

Qualcomm QCOM.O slumps more than 11% in premarket trading

The chip designer on Wednesday forecast Q2 revenue and profit below estimates, citing global memory chip shortage that is squeezing smartphone sales as electronics supply chains remain under pressure

MEMORY CHIP SUPPLIERS DIAL AI

J.P.Morgan ("overweight," PT: $185) said memory chip shortages are hitting handset volumes in China as supplies shift to AI and data centers, driving roughly 10% shortfall in shipments

TD Cowen ("buy," PT: $150) said guidance underscores how memory tightness is creating a "systemic headwind" for smartphones, adding that QCOM's diversification into autos and IoT is still in very early stages to offset the near‑term hit to its core handset and licensing businesses

Oppenheimer ("perform," PT: NA) said memory suppliers are prioritizing high‑bandwidth memory over DRAM, making handset makers more cautious and driving a sharper‑than‑expected pullback in phone shipments, particularly in China

Morningstar (fair value: $155) said co is facing near‑term smartphone weakness as memory suppliers shift production toward AI chips, prompting Chinese handset makers to cut output and reduce processor orders