Qualcomm's Earnings Highlight Growth Beyond Apple Amid Market Concerns
Qualcomm reported strong fiscal third-quarter results with revenue of $9.9 billion and a record automotive segment, but its stock fell due to concerns over declining iPhone-related sales. The company expects a sharp drop in revenue from Apple products as the tech giant shifts more toward self-developed chips. Despite this, Qualcomm is preparing for growth through new data center initiatives set to launch later this year. The firm aims to generate $5 billion in data center revenue by 2027 and $15 billion by 2029 with two major hyperscaler chip deals already underway. CEO Cristiano Amon anticipates non-handset business will grow over 60% next fiscal year, offsetting Apple-related losses. However, the market remains focused on near-term challenges rather than long-term opportunities. Qualcomm's stock has underperformed compared to broader semiconductor indices and is trading at a discount relative to its historical valuation metrics. While earnings are expected to decline in 2026, growth projections for later years suggest potential as data center revenue scales up.
Topics: Apple data center growth handset sales decline Qualcomm