Qualcomm Shares Jump Despite Weak Guidance
Qualcomm shares surged as much as 11.2% in Thursday premarket trading, reversing earlier losses after initially dropping 6% in after-hours. The sharp turnaround followed upbeat comments from CEO Cristiano Amon, which reassured investors despite weaker-than-expected forward guidance.
Early Hyperscaler Demand Boosts Sentiment
Amon revealed that Qualcomm will begin shipping chips to a major hyperscaler data center client this year—well ahead of the previously communicated fiscal 2027 timeline. This earlier rollout signals growing demand tied to AI infrastructure and cloud computing.
الصين Smartphone Market Expected to Recover
The company also highlighted improving conditions in China, its largest smartphone market. Qualcomm expects the sector to bottom out in the third quarter and return to sequential growth in the following quarter, offering a potential recovery catalyst.
Earnings Beat but Revenue Declines Year-on-Year
Qualcomm reported adjusted earnings per share (EPS) of $2.65, beating analyst expectations of $2.55. Revenue came in at $10.6 billion, slightly above the $10.58 billion forecast but down from $10.98 billion in the same period last year.
Weak Outlook Weighs on Forward Expectations
For the third quarter, Qualcomm projected:
- Revenue: $9.2 billion to $10 billion (midpoint $9.6 billion vs. $10.26 billion expected)
- Adjusted EPS: $2.10 to $2.30 (midpoint $2.20 vs. $2.43 expected)
The softer outlook reflects ongoing challenges across parts of the semiconductor market.
AI Transformation Remains Central Theme
Amon emphasized that Qualcomm is navigating a major industry shift driven by artificial intelligence:
“We are in a period of profound transformation — the rise of AI agents is reshaping our roadmap across every platform we develop.”
Automotive and IoT Drive Growth
Qualcomm’s diversification strategy showed strength in non-handset segments:
- Automotive revenue: $1.33 billion (up 38% year-over-year, record high)
- Automotive + IoT combined: up 20% year-over-year
- Handset revenue: down 13% to $6.02 billion
- Licensing (QTL): $1.38 billion (up 5% year-over-year)
Analysts Remain Cautious
Analysts at Morgan Stanley maintained a cautious outlook, noting that Qualcomm may struggle to match competitors with more direct exposure to AI-driven growth, while other segments outside automotive remain under pressure.
