Qualcomm shares dropped 10% after issuing disappointing guidance due to memory chip supply issues for consumer electronics caused by high demand for AI data centers. CEO Cristiano Amon attributed the weakness to memory availability, impacting smartphones, computers, and wearable tech. The company forecasts adjusted earnings per share of $2.45-$2.65 on revenue of $10.2-$11 billion this quarter.

Amon expressed uncertainty on potential price hikes by smartphone makers amid supply shortages. He noted customers focusing on higher-tier devices could absorb memory price increases. Tech firms like Arm and Apple are also affected by memory crunch, with supply-demand imbalances benefiting memory chipmakers such as Micron Technology and Samsung Electronics. Qualcomm anticipates data center sales from new AI chips in fiscal 2027.

Read more at CNBC: Qualcomm issues dire memory shortage warning