Qualcomm Incorporated saw its stock price firm on Friday, gaining 1.6% to close at $140.70. Trading volume reached approximately 13.1 million shares as investors positioned ahead of the Presidents Day market holiday. U.S. equity markets will remain closed on Monday, with regular trading set to resume on Tuesday, February 17.
Earnings Guidance and Market Pressure
The wireless technology leader continues to navigate a challenging environment. On February 4, the company issued second-quarter revenue guidance in the range of $10.2 billion to $11 billion, alongside adjusted earnings per share projected between $2.45 and $2.65. Both figures fell short of Wall Street consensus estimates. Qualcomm management attributed the softer outlook to a global shortage of memory chips and reduced orders from original equipment manufacturers (OEMs) as supply chain pressures mount.
"I'm very pleased with the state of our business—the primary constraint is simply the availability of memory," Chief Executive Cristiano Amon stated in an interview with Reuters. Following the earnings release, Qualcomm shares declined roughly 9% in after-hours trading, reflecting investor concern over the near-term headwinds.
Broader Market and Sector Performance
The wider market provided little momentum on Friday. The S&P 500 ended essentially flat, while the Nasdaq Composite drifted lower. This muted activity occurred despite fresh inflation data that eased some concerns and slightly increased market expectations for an interest rate cut in June, as tracked by the CME FedWatch Tool.
"Large-cap technology stocks continue to act as a drag on the broader market," observed Michael James, managing director at Rosenblatt Securities.
Chipmakers, however, managed a modest advance heading into the weekend. The Philadelphia Semiconductor Index, a key benchmark tracking major semiconductor companies, rose 0.66% on the day.
Industry-Wide Memory Constraints
Qualcomm is not alone in highlighting memory supply as a critical bottleneck. Company executives warned that tight availability could persist through the current fiscal year and potentially into 2027. Arm Holdings Chief Financial Officer Jason Child echoed this sentiment, noting, "Regrettably, the entire sector is feeling the impact of memory shortages."
Analysts suggest the issue is systemic. "Qualcomm's results largely mirror broader industry trends rather than company-specific problems," said Zavier Wong, an analyst at eToro. Research firm Counterpoint projects a 7% decline in shipments of advanced smartphone chips for the 2026 calendar year.
Despite these pressures, CEO Amon indicated that Qualcomm's upcoming data-center artificial intelligence chips, scheduled for launch in the second half of the year, are not expected to be affected by the memory shortage.
Key Focus for the Week Ahead
As trading resumes Tuesday, market participants will closely monitor any signals regarding memory supply and pricing dynamics. A critical watchpoint will be evidence that smartphone manufacturers are beginning to rebuild inventories rather than further curtailing production plans. The market closure on Monday may lead to choppy price action at Tuesday's open.
A significant risk remains: if memory supply tightens further or prices climb anew, handset production could stall irrespective of underlying consumer demand. Such a scenario would directly pressure Qualcomm's handset-chip shipment volumes and diminish the stock's investment appeal.
Samsung Event in Focus
Looking further ahead, Samsung Electronics has scheduled its Galaxy Unpacked event for February 25 in San Francisco. The livestream will begin at 10 a.m. Pacific Time (1 p.m. Eastern Time). This launch event for new flagship devices is widely anticipated by analysts seeking clearer signals on demand for premium Android smartphones—a segment where Qualcomm's exposure is significant.
