Why did Qualcomm stock drop about 9% after-hours?

The company posted Q1 revenue growth but guided cautiously, citing unstable smartphone chip demand and memory supply constraints. That combination clouded visibility on Android order timing and margins, prompting investors to reset recovery expectations. The reaction reflects concern that handset restocking may slip, pushing revenue and margin improvement into later quarters.

Is Qualcomm stock a buy for HK investors now?

It depends on risk tolerance and horizon. Valuation sits near 30x trailing EPS with an approximately 8% free cash flow yield and a 2% plus dividend. Our model rates it A with a Buy suggestion, but street views are split. Consider phased entries, respect volatility, and watch Android sell-through and memory supply trends.

What should I watch next after these QCOM earnings?

Focus on China Android sell-through during 618 and Golden Week, flagship launch cadence, and any updates on memory supply. Monitor margin commentary around mix and pricing. Also track inventory levels at OEMs and distributors, which influence order timing and quarterly revenue recognition.

How do memory supply constraints impact Qualcomm’s results?

If memory components are tight, OEMs may delay complete device builds even when application processors are available. That pushes unit shipments and revenue into later quarters and can hurt near-term margins. As supply normalizes, backlogged builds can clear, improving shipment timing and operating leverage.

What signals indicate a smartphone chip demand recovery?

Watch improving channel inventories, stronger premium Android sell-through, rising average selling prices tied to on-device AI, and steadier order patterns from major OEMs. Positive commentary from management on backlog and visibility, plus easing supply bottlenecks, would bolster confidence in a sustained recovery.

Global Market Insights

QCOM Stock Today: February 05 — Weak Guide Hits Phone Chips; Shares -9%

ByHuzaifa Zahoor February 5, 2026February 5, 2026

Qualcomm stock dropped about 9% after-hours on February 5 after the company posted Q1 revenue of $12.25 billion, up 5% year over year, but guided cautiously as smartphone chip demand remains unstable and memory supply limits weigh on visibility. Management comments put the focus on Android order timing and margins. For Hong Kong investors, this matters because China Android brands drive volumes across the region. We review the print, the setup for QCOM, and key signals to monitor next.