Qualcomm, a renowned manufacturer of smartphone chips, issued a rather disappointing revenue forecast for the ongoing fiscal quarter. This move has ignited concerns in the market, as the shortage of memory chips and subsequent price surges are feared to potentially dampen the demand for mobile phones. Consequently, Qualcomm's shares experienced a sharp decline during after-hours trading.

In the earnings report released after the market closed on Wednesday, Qualcomm projected its revenue for the second quarter to range between $10.2 billion and $11.0 billion. The adjusted earnings per share were estimated at $2.55. Both figures fell short of the average expectations set by analysts. Qualcomm explained that due to the tight supply and substantial price hikes of memory chips, the production of mobile phones by some customers would fall below their initial projections. Moreover, the scale of new business ventures was not yet large enough to compensate for the sluggishness in the mobile phone chip market.

Despite these challenges, CEO Amon remained upbeat about the demand for high-end smartphones. Nevertheless, Qualcomm's shares took a hit, dropping approximately 9% in after-hours trading on Wednesday. Year-to-date, the shares have declined by 13%. In the first fiscal quarter, Qualcomm reported adjusted earnings per share of $2.78 and a 5% increase in revenue, reaching approximately $12.3 billion. However, these results also failed to meet analysts' expectations.