Qualcomm reported adjusted EPS of $3.50 for the fiscal first quarter, surpassing the Zacks Consensus Estimate of $3.39 and up from $3.41 a year earlier. Revenue came in at $12.25 billion, edging past the $12.21 billion consensus and representing a 10% year-over-year increase driven by strong chipset demand in smartphones and IoT devices. Gross margin expanded by 120 basis points to 58.3%, reflecting higher royalty contributions and efficient cost controls in its semiconductor segment.

In its outlook for the current quarter, Qualcomm projected non-GAAP EPS of $2.45 to $2.65 on revenue of $10.2 billion to $11 billion, well below analysts’ consensus of $2.89 per share and $11.11 billion in sales. Management attributed the guidance shortfall to constrained DRAM and NAND supply, as data-center customers’ large orders have diverted production away from mobile memory. CEO Cristiano Amon warned that memory availability ‘‘will define the size of the mobile market’’ in the coming months and CFO Akash Palkhiwala confirmed that inventory adjustments by handset OEMs are extending the impact into the second half of the year.

Qualcomm shares plunged 10% in after-hours trading following the release, erasing nearly $16 billion in market value. Short-interest data shows a 25% increase in bearish bets over the past two weeks, as hedge funds position for further downside in light of the revenue shortfall. Several brokerages cut their price targets by an average of 15%, with one underweight rating highlighting the risk of protracted memory constraints delaying Qualcomm’s recovery in mobile chip sales.