Qualcomm (QCOM) shares plummeted 5.02% in intraday trading on Thursday, despite the chip designer reporting better-than-expected quarterly results. The sharp decline came after the company warned of a potential loss of business from its key customer Samsung next year, overshadowing its strong earnings report.

In its earnings call, Qualcomm CEO Cristiano Amon stated, "When you think about Galaxy S26, we're planning for 75% - that's what we expect," indicating a potential reduction in chip orders from Samsung for its upcoming flagship smartphone. This news raised concerns among investors about Qualcomm's future revenue prospects, as Samsung is one of its largest customers in the Android smartphone market.

The sell-off in Qualcomm shares also comes amid broader market concerns about stretched valuations in technology stocks, particularly those related to artificial intelligence. Despite reporting fiscal fourth-quarter adjusted earnings of $3 per share, surpassing analyst estimates, and providing an optimistic forecast for the current quarter, investors focused on the potential loss of Samsung's business and higher-than-expected expense growth, driving the stock lower.