TLDRs;
- Qualcomm downgraded to neutral by Daiwa amid memory supply and pricing concerns, pressuring shares lower.
- DRAM shortages and pricing pressures are causing uncertainty for Qualcomm’s smartphone business, affecting investor confidence.
- Qualcomm investors are focused on Samsung’s upcoming launch and how memory limits may affect chip demand.
- Competition from MediaTek, Apple, and Samsung adds pressure as Qualcomm navigates memory shortages and market uncertainties.
New York, February 12, 2026 – Qualcomm (NASDAQ: QCOM) shares fell on Thursday following a downgrade from Daiwa Securities, with traders closely watching memory supply constraints and the upcoming Samsung Galaxy Unpacked event. The stock dropped 1.8% in regular trading, closing near $138.5, before seeing little movement in after-hours trading.
The downgrade comes amid ongoing uncertainty in the smartphone chip sector, as memory shortages and pricing pressures continue to weigh on handset manufacturers.
Daiwa Cuts Rating to Neutral
Daiwa Securities shifted its Qualcomm rating from “outperform” to “neutral,” setting a price target of $140. The move adds to a string of recent analyst adjustments, highlighting the market’s growing caution around the chipmaker’s near-term performance.
“The downgrade reflects concerns about memory supply limitations that could impact handset production in the coming quarters,” said a market strategist
following the news. Investors are taking note as Qualcomm’s stock reacts to each update in the smartphone supply chain.
Memory Crunch Clouds Outlook
The memory shortage has emerged as a central challenge for Qualcomm. CFO Akash Palkhiwala recently noted that “increasing demand for memory solutions in AI data centers is driving near-term uncertainty in memory supply and pricing for handset OEMs.” CEO Cristiano Amon emphasized that the issue is “100% related to memory,” referring to DRAM availability in smartphones.
Industry analysts suggest that these constraints could persist for several quarters, particularly in China, a key market for Qualcomm’s customers. While the company has diversified into automotive and data-center chips, handset production remains a major driver of its revenue.
Samsung Launch Adds Market Focus
All eyes are now on Samsung’s Galaxy Unpacked event scheduled for February 25 in San Francisco. Qualcomm supplies Snapdragon processors and modems to many flagship Android devices, and new product launches typically influence the company’s order flow and product mix.
Investors are watching closely to see if supply limitations could force handset manufacturers to reduce production schedules, potentially impacting Qualcomm’s shipments despite steady end-user demand. The broader chip sector has been volatile, with the Nasdaq shedding roughly 2% on Thursday alongside Qualcomm’s decline.
Competitive Pressures Remain
Beyond supply concerns, Qualcomm faces competitive challenges in the Android chip market. MediaTek continues to gain ground, while Apple and Samsung push ahead with in-house processors, limiting the potential for Qualcomm to capture the next cycle’s demand.
Looking ahead, the market will be closely monitoring whether the Daiwa downgrade triggers additional target cuts and how the broader chip sector reacts after recent selloffs. Qualcomm’s next earnings report is slated for May 6, offering further insight into its performance across both handset and non-phone segments.
Qualcomm’s stock performance reflects a delicate balancing act between supply-chain constraints, new product cycles, and competitive pressures. Investors will be watching closely over the coming weeks, particularly as Samsung’s Galaxy event approaches and analysts reassess the company’s near-term prospects.
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