Qualcomm Q3 Earnings to Reflect AI Impact on Smartphone Market, Data Center Expansion
Chipmaker Qualcomm (QCOM) is set to report its third-quarter earnings amid a challenging smartphone market driven by rising memory costs and the global shift toward AI. Analysts note that increased prices for smartphones are not offsetting higher component costs, leading to negative unit growth in the sector. For Q3 2026, Qualcomm is expected to post lower-than-last-year results with an estimated EPS of $2.21 on revenue of $9.6 billion. To mitigate its reliance on a slowing handset business, Qualcomm has been expanding into AI data centers and announced plans during its June investor day event. The company anticipates generating $5 billion in fiscal 2027 from this new segment and raised non-handset sales projections to $40 billion by fiscal 2029. Despite these efforts, the broader decline in smartphone shipments is already affecting Qualcomm's performance. Q2 global smartphone shipments dropped 11% year-over-year, with handset revenue expected to fall about 21%. However, automotive-related sales are projected to rise significantly.
Tickers: $QCOM
Topics: AI data centers diversification memory shortage smartphones