Qualcomm shares plunged 8% 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.
Amon said handset demand remains strong, but memory supply is down as more resources go toward high-bandwidth memory used in data centers.
"The problem is, all of the memory vendors have dedicated all the capacity to data centers," and supply availability for consumer electronics will be lower but costlier year over year, Amon told CNBC's Jon Fortt.