Qualcomm's stock price plummeted 5.06% during intraday trading on Monday, as the chipmaker faced significant selling pressure following disappointing forward guidance.

The sharp decline comes as investors digest the company's weaker-than-expected third-quarter outlook. Despite beating second-quarter earnings expectations, Qualcomm issued Q3 revenue guidance with a midpoint of $9.6 billion, well below the market consensus of $10.2 billion. The company's adjusted EPS guidance of $2.10-$2.30 also trailed the $2.38 consensus estimate.

The guidance shortfall is primarily attributed to ongoing weakness in the smartphone segment, where handset revenue fell 13% year-over-year due to declining non-Apple handset shipments and memory chip supply constraints impacting Chinese OEMs. This represents a reassessment by the market following Qualcomm's initial post-earnings surge, with investors now weighing near-term earnings headwinds more heavily against longer-term growth catalysts.