Qualcomm shares posted a modest gain on Friday, closing at $137.34, a rise of 0.8%. The stock traded between $135.31 and $139.13 during the session. The move came as the broader semiconductor sector rallied, with the PHLX semiconductor index surging 5.7%.
Memory Crunch Pressures Handset Outlook
The chipmaker is contending with a significant memory supply shortage, driven in part by soaring demand from AI data centers. This is pressuring smartphone manufacturers, which are key customers for Qualcomm. Apple CEO Tim Cook recently stated the company has "different levers" to manage rising memory costs. Analyst commentary suggests Apple may have an advantage in securing dynamic random-access memory (DRAM) supply.
Qualcomm has incorporated these constraints into its financial guidance. For the fiscal second quarter, the company projects revenue in a range of $10.2 billion to $11.0 billion, with adjusted diluted earnings per share estimated between $2.45 and $2.65. This follows a record quarterly revenue of approximately $12.3 billion, with GAAP EPS of $2.78 and adjusted EPS of $3.50.
Executive Sale and Sector Context
In a separate filing, Qualcomm's Chief Financial Officer, Akash Palkhiwala, sold 3,333 shares on February 6 across four transactions priced between $136 and $139. The company noted the sales were executed under a pre-arranged Rule 10b5-1 trading plan, a standard practice for scheduled executive transactions.
The memory shortage presents a complex dynamic. While it could lead smartphone makers to reduce production forecasts—Qualcomm's CFO noted some Chinese clients are already cutting builds—it also reflects strong underlying demand in the tech sector. The Semiconductor Industry Association projects global chip sales will reach $1 trillion this year.
Looking ahead, investors are focused on DRAM pricing trends, updates to smartphone production targets, and commentary from the upcoming Mobile World Congress in Barcelona. The event, scheduled for March 2–5, may provide clearer signals on hardware roadmaps and supply chain conditions for the handset market.
