Qualcomm Just Gave Investors a Reason to Look Beyond Apple. The Market Is Focusing on the Wrong Story. - Barchart.com

Despite a strong quarterly performance, Qualcomm's stock faced selling pressure following its earnings report. The company reported revenue of $9.9 billion, meeting the high end of its guidance, and n... Read original →

While Qualcomm’s quarterly results met expectations, market focus remains fixated on declining iPhone chip demand, overlooking its strategic pivot into data centers. Smartphone chip revenue dropped 20% YoY due to Apple order weakness and memory supply constraints, yet automotive segments surged to a record $1.6B. Data center revenue is expected to ramp in Q4, supported by two major hyperscaler deals, with non-handset growth forecasted to exceed 60% by FY2027. This shift signals a fundamental industry transition from consumer to infrastructure-centric chip demand. Despite a 4% stock decline and below-historical P/E and P/S ratios, analysts anticipate strong earnings recovery from FY2028 onward. If data center scaling proceeds as expected, Qualcomm could redefine competitive dynamics in AI and edge computing, especially as supply chain resilience and pricing power become key differentiators.