Memory chip shortages are expected to impact smartphone supply this year, with Qualcomm already seeing some OEMs reducing orders. The premium segment of the market may be more resilient to price increases due to the shortage. Qualcomm reported a 5% revenue increase in the first quarter of fiscal 2026 but expects second-quarter revenue to decline due to the memory chip shortage. Smartphone unit shipments are forecasted to decrease by 1% in 2026 as average selling prices rise. Qualcomm’s outlook is uncertain as the memory chip shortage continues to affect its core business.

Tech giants are rapidly building AI data centers, leading to a severe shortage of memory chips, particularly DRAM. Qualcomm disclosed that smartphone OEMs are cautious due to the memory shortage, impacting chipset sales. While the memory situation is challenging for Qualcomm, there is optimism for the premium smartphone segment. Despite an expected decline in smartphone shipments this year, IDC projects record-high total smartphone shipment value. Qualcomm anticipates its chips to power 75% of Samsung’s premium devices, potentially offsetting some of the memory shortage impacts.

Qualcomm stock may face pressure in 2026 due to the memory chip shortage, but the smartphone market is expected to recover once the situation stabilizes. With Qualcomm trading at roughly 12 times forward earnings, the stock may appeal to long-term investors. Despite the challenges, Qualcomm’s shift towards higher-end chips could help mitigate the effects of the memory shortage. Investors should consider the long-term potential of Qualcomm stock amidst the current market conditions.

Read more at Nasdaq: Qualcomm’s Memory Warning Sounds Scary, But It’s Not All Bad News for Investors