Qualcomm Faces Investor Backlash After Revenue Guidance Misses Mark

Despite a strong quarterly performance, Qualcomm Inc. saw its shares drop more than 8% following a revenue forecast that didn't meet investor expectations. The chipmaker reported a 17% increase in year-over-year revenue to $11 billion and a 21% rise in net income for the latest quarter. However, its projected sales for the third quarter of fiscal 2025, ranging between $9.9 billion and $10.7 billion, fell short of what many had hoped for.

Market Reacts to Qualcomm's Outlook

The decline in share price was preceded by a 4.43% slide in after-hours trading on Wednesday, as the market digested Qualcomm's future revenue projections. CEO Cristiano Amon highlighted the company's efforts towards diversification, but the overshadowing guidance left investors concerned.

At 11:58 am ET, Qualcomm's shares were down 8.79%, trading at $135.41 each.