Qualcomm’s 11% Rally Fails to Offset 20% YTD Loss as DRAM Shortage Persists
Qualcomm’s shares rallied for nine sessions, gaining 11%, but remain 20% lower this year, the weakest performer in the Philadelphia semiconductor index. The 25% first-quarter plunge marked its worst quarterly drop since 2002 as soaring DRAM prices constrain handset customers.
1. Recent Share Rally and Overall Decline
Qualcomm’s shares have risen for nine straight sessions, an 11% gain, but remain 20% below their start-of-year level, making them the worst performer in the Philadelphia semiconductor index for 2026.
2. Worst Quarterly Plunge Since 2002
The stock fell 25% in the first quarter, marking Qualcomm’s steepest quarterly decline since 2002 as investors react to lowered earnings forecasts and deteriorating growth projections.
3. DRAM Shortages Impact Handset Demand
Soaring DRAM prices—up nearly 500% since last August—have constrained handset manufacturers, particularly in China, leading to fewer device builds and reducing demand for Qualcomm’s smartphone chips.
4. Diversification into New Markets
CEO Cristiano Amon is steering Qualcomm toward automotive, PC and data center chips, but these segments have not yet offset weakness in its core handset business.