Qualcomm shares plunged 10% after the chipmaker issued disappointing guidance as skyrocketing demand for artificial intelligence data centers eats away at memory chip supply for consumer electronics.
On an earnings call with analysts, Qualcomm CEO Cristiano Amon said the weakness was "100% related to memory."
The availability of dynamic random access memory, commonly used in smartphones, computers and wearable tech, was down from a year ago.
He said handset demand remains strong, but memory supply is down as more resources go toward high-bandwidth memory used in data centers.
"I think the market is going to be sized by that," Amon said. "Our customers are adjusting, I think, their build production to the memory they have available."