Qualcomm shares drop as chip supply constraints hold back sales

Qualcomm Inc shares dipped as much as 9% in after-hours trading as the company said that semiconductor supply constraints that have roiled the industry contributed to fiscal first-quarter sales that slightly missed Wall Street expectations.
The results come as chip shortages force automakers such as General Motors Co on Wednesday to cut production at multiple plants. While Qualcomm does not make the chips that are holding up automotive plants, the company works with some of the same chip contract manufacturers that are backed up, and Qualcomm executives told Reuters that supplies will remain tight through the first half of 2021.
“If we could make more, we could sell it,” Chief Executive Steve Mollenkopf told Reuters in an interview.
The share price declines for the San Diego, California-based chip designer came even as it forecast fiscal second-quarter sales and profits above Wall Street expectations, driven by a wave of phone buyers around the world upgrading their devices for 5G network connectivity.