Qualcomm stock falls on Q4 forecast and Apple revenue drop

Technology corporation Qualcomm’s shares fell 4% on Wednesday as its fourth-quarter profit forecast fell short of Wall Street’s expectations.

The company also warned that revenue from Apple is expected to decline.

For the third quarter, Qualcomm reported a 4% revenue drop to $9.95 billion, beating expectations of $9.67 billion.

The company forecast fourth-quarter revenue between $9.7 billion and $10.5 billion, with its core chip business expected to generate between $8.4 billion and $9 billion.

However, Qualcomm noted that supply constraints will reduce its component share in the next iPhone launch to well below its original 20% target. To combat rising supply chain costs and restore gross margins, it plans to raise prices starting September 1.

Despite headwinds from smartphones, the San Diego-based firm is pivoting heavily toward AI data centers.

Qualcomm expects non-handset growth to completely replace its Apple-related revenue by fiscal 2027, targeting $5 billion in data-center revenue by then.