Qualcomm falls 6% after hours as memory costs hit phone chips; it targets $5bn data-centre revenue in fiscal 2027
Quarterly results beat estimates, but handset chip sales fell 26% to $5.14 billion and the earnings forecast came in light; data-centre revenue was $650 million.
Why it matters
The AI build-out is pulling memory supply toward data centres, and Qualcomm says rising memory costs are forcing phone makers to raise prices and hurting demand. Chief executive Cristiano Amon said the company has a supply problem, not a demand problem, and is betting on AI data-centre chips, signing an optical connectivity customer and engaging a global hyperscaler. Automotive revenue rose 89% to $1.99 billion. Watch whether the $5 billion data-centre target for fiscal 2027 holds as memory stays tight.
Key facts
- Shares fell about 6% in extended trading on November 4, 2026
- Handset chip sales fell 26% to $5.14 billion
- Next-quarter revenue guide $10.4 billion to $11.2 billion
- Data-centre revenue $650 million in the quarter
- Targets $5 billion data-centre revenue in fiscal 2027
- Automotive revenue up 89% to $1.99 billion