Qualcomm shares decline as smartphone chip revenue drops 26%

Shares of Qualcomm fell 9.6% in pre-market trading following the announcement of its fourth-quarter results. The decline comes as revenue from smartphone chips dropped 26% year-over-year, compounded by a future outlook that fell short of analysts' estimates.

Although both revenue and adjusted earnings slightly exceeded market expectations, the company’s projections—pointing to lower earnings per share and shrinking operating margins—have fueled investor concerns.

These concerns stem from rising semiconductor costs and a lag in the impact of price increases on profit margins. This has intensified pressure on the stock, triggering the recent decline—a downward trend that could potentially persist in the coming period.