Qualcomm Price Target Cut to $160, Projects $10.2–11B Q2 Revenue
UBS cut Qualcomm’s price target from $185 to $160 and maintained a Neutral rating, while Mizuho trimmed its target from $175 to $160. Qualcomm forecast Q2 revenue of $10.2–11.0 billion and EPS of $2.45–2.65, cited global memory chip shortages, and saw shares fall 9% after-hours.
1. Analyst Price Target Revisions
UBS and Mizuho both maintained Neutral ratings on Qualcomm but cut price targets to $160 from $185 and $175 respectively, reflecting concerns over handset market headwinds. Mizuho forecasts a 4% year-over-year decline in global handset shipments for 2026.
2. Q2 Financial Outlook
Qualcomm’s Q2 guidance projects revenue of $10.2–11.0 billion and adjusted EPS of $2.45–2.65, falling short of consensus estimates and marking a decrease from previous projections. This forecast represents a notable downgrade compared with analysts’ prior expectations.
3. Memory Chip Shortage Impact
The company attributed the guidance miss to a global memory chip shortage and rising memory prices, which constrained smartphone production and led OEMs, particularly in China, to reduce inventory. Qualcomm’s CEO highlighted memory limits as the sole factor driving weaker-than-expected results.
4. Market Reaction and Share Performance
Following the guidance announcement, Qualcomm shares fell approximately 9% in after-hours trading and are down over 13% year-to-date. The sharp decline underscores investor concerns about near-term growth challenges and sector-wide pricing pressures.