Core Viewpoint - Qualcomm, once a leader in the semiconductor industry, is facing challenges due to a shift in its business model and external market pressures, particularly from rising memory prices impacting demand for its products. Group 1: Historical Context - Qualcomm was a dominant player in the late 1990s, particularly known for its CDMA technology which became essential for 3G networks [1] - The company's stock experienced a remarkable increase of 2619.42% in 1999, although it faced significant declines in the following years during the Internet bust [2] Group 2: Current Business Dynamics - Currently, Qualcomm generates most of its revenue from selling chips and modems for smartphones, but this market has matured, leading to stagnant unit sales and limited revenue growth [3] - There was renewed optimism for Qualcomm due to potential AI-driven upgrades, especially for Apple iPhones, which are a major source of demand [3] Group 3: Market Challenges - A new memory price boom is creating headwinds for Qualcomm, as rising memory costs could dampen demand for PCs, laptops, and smartphones [4][5] - The semiconductor industry is experiencing a memory chip shortage that may persist into 2027, negatively affecting device manufacturers and end users [6] - Surging contract prices for memory are increasing manufacturing costs, which may lead to higher prices for end products, potentially reducing demand for Qualcomm's Snapdragon chips and modems [7]