Qualcomm stock slid 9% on Thursday, leading chip stocks lower after the company issued a light forecast.
The chipmaker, which reported Q4 financial results after the bell Wednesday, slightly beat Q4 estimates for earnings, but its current-quarter guidance came in weak.
Qualcomm projected first-quarter adjusted earnings between $2.15 and $2.35 per share, below analysts' estimates of $2.27 per share. The company expects Q1 revenue to range from $10.4 billion to $11.2 billion, versus Wall Street estimates of $10.48 billion.
Semiconductor peers, including AMD, Micron, Arm and Intel, also declined Thursday, continuing a post-election selloff on fears of a data center slowdown, as Democrats indicated plans for artificial intelligence regulation.
The memory crunch has also weighed on the broader chip industry.