Qualcomm stock slides after Q3 earnings top revenue expectations as smartphone market slows - finance.yahoo.com

Qualcomm reported strong third-quarter results, beating expectations with EPS of $2.21 and revenue of $9.9 billion, surpassing forecasts of $2.21 EPS and $9.6 billion in revenue. Despite this, the sto... Read original →

Despite exceeding forecasts with $9.9B in revenue and $2.21 EPS, Qualcomm's stock dropped 6% due to declining smartphone demand, the worst Q2 decline in 13 years. The downturn is driven by rising memory costs and AI chip supply constraints, affecting the entire upstream ecosystem. Technologically, this signals a slowdown in mobile chipset demand, pressuring suppliers like TSMC and SK Hynix. From a geopolitical standpoint, increasing scrutiny over semiconductor exports to China Taiwan/ Taiwan, China and China Hong Kong/ Hong Kong, China heightens supply chain risks. Competitors such as NVIDIA and AMD are aggressively expanding in data center chips, posing a threat to Qualcomm’s transition strategy. If smartphone sales remain weak, Qualcomm’s shift toward AI data centers will be critical, but near-term profitability remains vulnerable to legacy segment volatility.