Qualcomm's stock experienced a significant pre-market plunge of 11.67% following the company's latest earnings report. The semiconductor giant reported better-than-expected results for its fiscal first quarter but issued disappointing guidance for the current period.

The sharp decline was driven by Qualcomm's weaker-than-expected outlook for its fiscal second quarter. The company projected revenue between $10.2 billion and $11 billion, falling short of analyst expectations. Adjusted earnings per share guidance of $2.45 to $2.65 also missed Wall Street estimates.

According to company executives and analysts, the cautious outlook stems from an industry-wide shortage of memory chips that is impacting smartphone production and sales. Qualcomm CEO Cristiano Amon noted that original equipment manufacturers, especially in China, are reducing inventory levels to adjust to constrained memory supply, thereby affecting demand for Qualcomm's smartphone chips despite ongoing consumer interest in premium-tier devices. The memory shortage is expected to define the overall scale of the handset industry through the fiscal year.