Qualcomm's stock plummeted 9.66% in post-market trading following the release of its quarterly financial results. The semiconductor company reported better-than-expected earnings for its fiscal first quarter but issued a disappointing outlook for the current period.

The sharp decline was driven by Qualcomm's weak second-quarter guidance, which fell short of analyst estimates. The company forecast revenue between $10.2 billion and $11 billion, below the consensus estimate of $11.11 billion. Adjusted earnings per share guidance of $2.45 to $2.65 also missed the expected $2.90.

According to company statements and CEO Cristiano Amon, the guidance shortfall stems from an industry-wide memory chip shortage that is impacting smartphone sales. Amon noted that original equipment manufacturers, particularly in China, are reducing inventory levels to adjust to the memory supply constraints, which is affecting demand for Qualcomm's chips despite strong consumer interest in premium-tier devices.