Qualcomm warns of sales hit from cooling smartphone demand

"We expect the elevated uncertainty in the global economy and the impact of COVID measures in China will cause customers to act with caution in managing their purchases in the second half," said Chief Financial Officer Akash Palkhiwala

Qualcomm Inc QCOM.O forecast fourth-quarter revenue below Wall Street targets on Wednesday, bracing for a difficult economy and a slowdown in smartphone demand that could hurt its mainstay handset chip business.

Shares of the San Diego-based company fell about 2.8% in extended trading, deepening this year's drop of about 18% amid a broader selloff in growth stocks.