Qualcomm Shares Gain 11% in Rally Yet Sit 20% Below 2026 Highs
Qualcomm’s shares have climbed for nine consecutive sessions, adding 11%, but remain 20% lower for 2026 and hit their lowest level since 2023. The stock’s 25% first-quarter slump—its worst since 2002—follows aggressive earnings cuts by analysts as memory shortages curb handset production.
1. Recent Share Performance
Qualcomm’s shares have rallied for nine straight sessions, marking an 11% gain—the longest winning streak since November 2023—yet the stock is still down 20% year-to-date and fell this month to its lowest price level since 2023. This contrast underscores persistent investor skepticism despite short-term momentum.
2. Memory Market Constraints
Soaring demand for AI data center memory has propelled DRAM prices nearly 500% since August, limiting supply for consumer device makers and driving component costs higher. These constraints have led major handset customers, particularly in China, to reduce production, weighing heavily on Qualcomm’s core revenue stream.
3. Diversification Efforts and Outlook
Qualcomm is expanding into automotive, personal computer and data center chips to offset handset market headwinds, but these newer segments have yet to compensate for the drop in smartphone-related sales. With no clear timeline for easing memory shortages, analysts have slashed near-term earnings estimates, dampening sentiment on the stock.