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Qualcomm (QCOM) shares fell 6.46% after hours on November 4 as fiscal Q4 adjusted EPS of $2.17 landed roughly in line with estimates and handset chip sales dropped 26%, according to Seoul Economic Daily.
Arm beat forecasts with $1.44 billion in revenue and 52 cents of adjusted EPS, but its Q3 guidance only slightly topped consensus and the stock slipped after hours.
Seoul Economic Daily tied the slide to a memory shortage hitting smartphones, while Qualcomm guided fiscal Q1 revenue to $10.4 billion to $11.2 billion.
Gotrade News - Qualcomm (QCOM) shares fell 6.46% in after-hours trading on Wednesday, November 4, after fiscal fourth-quarter adjusted EPS of $2.17 landed roughly in line with estimates and handset chip sales dropped 26%, according to Seoul Economic Daily. Arm Holdings (ARM) also slipped as a memory shortage hit smartphones.
Both chipmakers reported after the US close on Wednesday. Arm shares had already closed 5.28% lower in the regular session and were down a further 3.05% after hours as of 4:43 p.m. ET, per Seoul Economic Daily, even though the chip designer topped revenue and profit forecasts. Investing.com put Arm's after-hours decline at nearly 4%, saying the lack of blowout guidance offset the quarterly beat.
Regular-session close on November 4, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
Qualcomm Guides Fiscal Q1 Revenue to $10.4 Billion to $11.2 Billion
According to Qualcomm's release, the company expects fiscal first-quarter 2027 revenue of $10.4 billion to $11.2 billion and non-GAAP EPS of $2.15 to $2.35. It guided QCT chip revenue to $9.0 billion to $9.6 billion and QTL licensing revenue to $1.3 billion to $1.5 billion.
"Fiscal 2027 marks the start of our non-handset revenue inflection, including the ramp of our Data Center business," CEO Cristiano Amon said in the release. Qualcomm projects non-handset revenues to grow by more than 60% year over year and reiterated its fiscal 2027 Data Center revenue target of $5 billion, according to the company. The handset picture is weaker: Qualcomm forecast a stagnant smartphone market next year, as reported by Seoul Economic Daily.
Automotive revenue jumped 89% in the fourth quarter, while handset revenue fell 26%, per the release. For the full fiscal 2026, Qualcomm reported non-GAAP revenue of $43.2 billion and non-GAAP EPS of $10.54.
Arm Guides Q3 Revenue to $1.54 Billion, Near Consensus
Arm forecast fiscal third-quarter 2027 revenue of $1.54 billion, plus or minus $50 million, and adjusted EPS of 56 cents, plus or minus 4 cents, against consensus of $1.53 billion and 55 cents, according to Investing.com. Seoul Economic Daily noted that some brokerages had projected revenue as high as $1.7 billion.
In the quarter just reported, licensing and other revenue rose 50% to $773 million and royalty revenue reached $670 million, with data center royalties doubling year over year, according to Arm's announcement. Arm said its confidence in "up to $2 billion in Arm AGI CPU revenue over FYE27 and FYE28" has increased, citing purchase orders from multiple customers through calendar 2027 and first commercial deliveries on track for its fiscal fourth quarter.
Why Did Qualcomm and Arm Stocks Fall?
Seoul Economic Daily tied both declines to a memory shortage, as memory suppliers shifted production toward high-bandwidth memory for AI data centers. "There is no problem with demand; the problem is supply," Amon said, while Arm CEO Rene Haas said, "If we had more supply, we could do more," as quoted by the same outlet.
Per Seeking Alpha's summary of Arm's earnings call, the risks management flagged included higher memory prices pressuring smartphone sales and supply-chain constraints on AGI CPU deliveries.
Intel Outlook Sparked the October 30 Chip Selloff
The reactions extend a rough stretch for chip stocks. On October 30, Qualcomm fell 11.7% midday to $163.75 after Intel guided fourth-quarter revenue to $15 billion to $16 billion, below a Wall Street consensus of about $17 billion, as reported by Investing.com. The same report said Arm and Marvell Technology (MRVL) also sank sharply in the sector-wide selloff.
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M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
