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Qualcomm Posts Record Quarter, Trims Outlook on DRAM Shortage Tied to AI Demand

The company blamed a DRAM squeeze driven by AI data centers for a softer Q2 outlook.

Overview

  • Fiscal Q1 revenue rose 5% to a record $12.25 billion with adjusted EPS of $3.50, topping LSEG estimates.
  • Q2 guidance calls for $10.2 billion to $11.0 billion in revenue and $2.45 to $2.65 in adjusted EPS, below Wall Street forecasts.
  • Executives said smartphone customers are curbing builds and inventories because memory makers are prioritizing AI datacenter orders, tightening DRAM supply.
  • Shares fell roughly 7% in after-hours trading as investors reacted to the weaker near-term outlook despite growth in automotive (+15% to $1.1 billion) and IoT (+9% to $1.69 billion).
  • Qualcomm highlighted diversification efforts including AI inference silicon with early shipments to Humane, and it returned $3.6 billion to shareholders via $2.6 billion in buybacks and a $0.89-per-share dividend.