Qualcomm issues weak profit forecast as AI data centers steal memory chips from smartphones

Qualcomm just delivered a classic earnings plot twist: beat the quarter, tank on the guidance. The chipmaker posted fiscal Q1 2026 results that topped Wall Street estimates, then immediately followed up with a profit forecast weak enough to send shares tumbling as much as 11% in after-hours trading. The numbers tell two very different stories Qualcomm’s fiscal Q1 2026 looked solid on paper. Adjusted earnings per share came in at $3.50, beating the $3.41 consensus. Revenue hit $12.25 billion against expectations of $12.21 billion. For Q2 fiscal 2026, Qualcomm guided revenue between $10.2 billion and $11 billion. Wall Street had been expecting $11.11 billion. The adjusted EPS forecast of $2.45 to $2.65 landed even further below the $2.89 consensus. AI is eating everyone’s lunch, including smartphones Qualcomm CEO Cristiano Amon pointed directly at surging demand from AI data centers as the primary driver. The massive buildout of AI infrastructure requires enormous quantities of memory chips, and that demand has essentially redirected critical memory supplies away from the smartphone sector. The impact has been particularly acute among smaller Chinese smartphone manufacturers, who lac...