Qualcomm Hits Oversold Territory as Reddit Sentiment Crashes Below 30

"It hasn't gone unnoticed by the broader market that Shares of Qualcomm (NASDAQ:QCOM) fell sharply in early February, coinciding with a noticeable shift in retail investor sentiment on platforms like Reddit and X from cautiously optimistic to decidedly bearish. The chipmaker reported Q1 revenue of $12.3 billion, a record for the quarter, yet the stock has tumbled 18% year-to-date. The disconnect stems from weak forward guidance, driven by a global memory chip shortage that's constraining smartphone manufacturers and forcing them to scale back production plans."

"On the plus side, Qualcomm's automotive segment delivered $1.10 billion in revenue, up 15% year-over-year, but this positive was overshadowed by management's Q2 guidance of only $10.2 to $11 billion in revenue, well below Wall Street expectations. CEO Cristiano Amon attributed the shortfall to memory supply constraints affecting handsets, particularly among Chinese OEMs who are adjusting build plans downward to manage cost pressures."

"Mentions of Qualcomm on Reddit's r/stocks and r/WallStreetBets have shifted from bullish to bearish in recent weeks. Sentiment scores dropped from 65 pre-earnings to a range of 20 to 36 post-earnings, reflecting growing skepticism about the company's ability to navigate near-term headwinds. Retail traders are voicing three primary concerns: Memory chip shortages are diverting supply to AI data centers, leaving smartphone manufacturers scrambling and delaying handset launches Weak Q2 guidance signals that the memory crisis will persist longer than initially expected, pressuring Qualcomm's core handset business Despite record revenue, earnings per share actually fell back over the last year, indicating operational challenges beneath the surface"

Qualcomm reported Q1 revenue of $12.3 billion, a quarterly record, while its stock has fallen 18% year-to-date. Management provided Q2 guidance of $10.2 to $11 billion, well below expectations, citing a global memory chip shortage that is constraining smartphone manufacturers and forcing production adjustments. The automotive segment grew to $1.10 billion in revenue, up 15% year-over-year, but that growth was overshadowed by handset-related headwinds. Retail sentiment on Reddit shifted markedly from positive to negative, with sentiment scores dropping from 65 pre-earnings to 20–36 post-earnings and traders voicing concerns about memory supply, guidance, and declining EPS.

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