Qualcomm Braces for Revenue Dip as Smartphone Market Stagnates

Wall Street forecasts a profit of $1.57 billion for the quarter, a recovery from last year’s $3.12 billion loss, which was heavily impacted by a $5.7 billion non-cash charge. On an adjusted basis, earnings are projected at $2.16 per share, trailing the $3.00 per share reported in the same period last year. Qualcomm stock has struggled to find momentum, trading down 4.7% throughout the year despite a recent minor uptick.

Market observers are looking past the handset numbers toward the company’s pivot into data center custom silicon. Morgan Stanley analysts suggest that while mobile growth remains muted, the firm's entry into the custom AI market is a critical "prove it" narrative for investors. StoneX analyst Cody Acree notes that while shipments of these new chips are expected to begin in the current quarter, they will likely weigh on gross margins initially. The success of this transition, rather than short-term smartphone variance, remains the primary metric for the company's future valuation.