Memory Shortfall Presses QCOM and ARM Shares, QCOM -11%, ARM -7%

Memory shortages in semiconductors continue to weigh on the smartphone supply chain, limiting production and sending shares of Qualcomm and Arm sharply lower. On February 3, 2026, Qualcomm (QCOM-US) fell more than 11% and Arm (ARM-US) dropped 7% in premarket trading. The shortage and price increases are expected to constrain handset shipments for months, according to executives and analysts. Qualcomm said some customers could not secure enough memory allocations to complete their products,拖累了 its order book and leading to a forecast of lower-than-expected revenue for the quarter. “Shortages and price increases in memory across the industry could determine the scale of the smartphone industry this fiscal year,” said Qualcomm CEO Cristiano Amon in a earnings call. “Unluckily, the entire industry is affected by memory.” ARM faces similar pressure as its architecture underpins many handset processors. Memory constraints could reduce its licensing revenue by as much as 2% over the next 12 months, said CFO Jason Child during a earnings call. Counterpoint Research estimates advanced smartphone chip shipments will decline 7% in 2026, and supply constraints are expected to persist through 2027. Both companies are shifting focus to faster-growing data center markets, with Qualcomm planning to introduce AI chips later this year expected to contribute revenue in its 2027 fiscal year.