US Stock Market Move | Q2 performance guidance soft, Qualcomm (QCOM.US) plunges more than 10% pre-market.

On Thursday, Qualcomm (QCOM.US) fell more than 10% in pre-market trading, and has fallen nearly 13% so far this year, closing at $133. On the news front, Qualcomm gave a weak performance forecast for the current quarter, exacerbating concerns in the market about the rising prices due to the shortage of storage chips, which further suppresses demand for smartphones. According to the financial report, in the first quarter ending December 28, 2025, Qualcomm's revenue increased by 5% year-on-year to $12.25 billion, better than the analysts' average expectation of $12.18 billion; adjusted net profit was $3.78 billion, down 1% year-on-year; adjusted earnings per share were $3.50, better than the analysts' average expectation of $3.40. Looking ahead, Qualcomm expects revenue to be between $10.2 billion and $11 billion in the second quarter ending in March, which is lower than analysts' average expectation of $11.2 billion; adjusted earnings per share are expected to be between $2.45 and $2.65, also lower than analysts' average forecast of $2.89. Qualcomm stated that although there is still demand for high-end smartphones, some customers' smartphone production may be lower than expected due to tight supply and rising prices of storage chips. Despite Qualcomm CEO Cristiano Amon pushing for the company's transformation and increasing chip sales for cars, personal computers, and data centers to diversify the business, the scale of these new businesses is still not enough to offset the slowdown in the smartphone chip market. However, Amon said in a statement, "Although our short-term outlook for our smartphone chip business is impacted by the industry-wide shortage of storage chips, we are still encouraged by the demand for high-end smartphones."