Amid ongoing uncertainty in the tech market, Qualcomm saw its shares rise 15% in extended trading after its CEO signalled optimism around a recovery in the smartphone segment and growth in data centre chips.
The company forecast third-quarter revenue between $9.2 billion and $10 billion, below estimates of $10.27 billion. Adjusted profit is expected between $2.10 and $2.30 per share, compared to estimates of $2.45. Chip revenue is projected at $7.9 billion to $8.5 billion, also below expectations of $8.93 billion.
Despite the weaker outlook, CEO Cristiano Amon said the worst phase may be over. “We can now call the bottom,” he said, adding that Qualcomm’s licensing business offers visibility into smartphone makers’ plans later in the year.
The company has faced pressure due to rising memory chip prices, which have increased smartphone and PC costs and reduced consumer demand. Qualcomm supplies chips to major brands like Apple and Samsung, making its performance a key indicator of the broader electronics market.
At the same time, Qualcomm is expanding into the fast-growing data centre chip segment. The company plans to start shipping products before the end of the year. Amon said Qualcomm is developing 3 types of chips: CPUs, inference accelerators, and custom ASICs. “We have engagement on a custom ASIC, which is what we wanted to do when we bought AlphaWave,” he said. The company acquired AlphaWave last year in a $2.4 billion deal.
This move comes as cloud providers increase spending on chips for AI inference, which requires handling heavy workloads. Industry experts noted that Qualcomm is gradually strengthening its position in the data centre space.
However, competition remains strong as companies like Apple and Samsung increasingly use their own in-house chips. CFO Akash Palkhiwala said expected Apple-related chip revenue for fiscal 27 is slightly over $2 billion.
Overall, Qualcomm’s outlook highlights a transition phase, balancing short-term pressure in smartphones with long-term opportunities in AI-driven infrastructure.
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