Qualcomm’s 11% Rally Falls Short as Shares Remain 20% Below Year Start
Qualcomm shares have rallied 11% over nine straight sessions—its longest winning streak since November 2023—but remain 20% below their 2026 opening, making them the worst performer in the Philadelphia semiconductor index. DRAM spot prices have climbed nearly 500% since August, squeezing handset customers and triggering multiple earnings cuts.
1. Recent Share Performance
Shares have risen for nine consecutive sessions, gaining 11%—Qualcomm’s longest winning streak since November 2023. Despite this rally, the stock is still down 20% year-to-date and suffered a 25% plunge in the first quarter, its worst quarterly drop since 2002.
2. Memory Market Constraints
Surging demand from AI data centers has pushed DRAM spot prices up almost 500% since August, creating supply shortages and higher costs for smartphone manufacturers. Prices remain about 13% off their January peak, keeping handset makers under pressure.
3. Analyst Outlook and Earnings Cuts
Over the past three months, Wall Street firms have repeatedly lowered earnings projections for Qualcomm as the memory shortage clouds near-term growth prospects. The uncertainty about when memory supply will improve continues to weigh on sentiment.
4. Diversification Efforts
Chief Executive Cristiano Amon is steering Qualcomm into automotive, PC and data center chips to reduce reliance on mobile handsets. These emerging segments, however, have yet to fully compensate for the downturn in its core smartphone chipset business.