Qualcomm’s Q4 earnings surpassed expectations, with adjusted revenue of $11.27 billion; however, the stock fell 2%.
After the U.S. market closed on November 4th Eastern Time, Qualcomm released its financial report. In the third fiscal quarter, revenue reached $11.27 billion, a year-on-year increase of 10%, surpassing market expectations of $10.79 billion. Adjusted EPS was $3.00, also higher than the expected $2.88. The company projects first-quarter revenue of $11.8 billion to $12.6 billion, exceeding analysts’ expectations of $11.59 billion.
Although Qualcomm continues to emphasize its diversification strategy, smartphone chips still account for 62% of total revenue. In the third quarter, revenue from this segment was $6.96 billion, up 14% year-on-year. Facing growth bottlenecks in its mobile business, Qualcomm is betting on the automotive and IoT sectors.
Automotive chip revenue was $1.05 billion, representing a 17% year-on-year increase; IoT business revenue (including Meta’s VR/AR devices) was $1.81 billion, up 7%. While these numbers look good, their scale remains limited. The automotive segment accounts for only 9.3% of total revenue, IoT accounts for 16%, and together they are less than half the size of the smartphone chip business. After the release of the earnings report, Qualcomm shares fell 2.26% in after-hours trading.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Anthropic allocates 5% of shares to set up a fund before IPO, Musk calls for direct distribution to the public
Anthropic announced the establishment of a public welfare fund, initially allocating 5% of its shares. When the company's valuation increases by 50%, another 2% will be added. The aim is to address the impact of AI on employment. Musk suggested directly distributing shares to the public.
AI Stocks Struggle to Rebound: Lacking Three Major Supports, July’s Rally Hard to Replicate
JPMorgan pointed out that due to the absence of ETF bargain-hunting funds, limited room for short covering, and the early termination of the $40 billion buyback by Samsung and SK Hynix, the rebound strength of AI stocks in October may not match that of July. The resurgence of leverage risk could intensify volatility.
A Trillion-Dollar Merger Pricing Game: Market Confidence in the Merger with Tesla (TSLA.US) Hinges on SpaceX (SPCX.US) Q3 Report to Be Released on Tuesday
SpaceX's third-quarter report is regarded by the market as a potential pricing anchor for a merger: Under an all-stock swap structure, the strength of performance directly determines the persuasive power of the share exchange ratio for Tesla shareholders, while massive capital expenditures are the biggest variable shaking confidence.
90% CET1 becomes the trigger! UBS (UBS.US) may leave due to new capital regulations, Swiss parliament faces dilemma of "too strict rules driving away major banks, too lenient rules facing referendum"
After the collapse of Credit Suisse in 2023, Swiss lawmakers are formulating new capital regulatory rules for UBS. However, this has left them in a dilemma: if the standards are set too strictly, it may force Switzerland's largest bank to relocate abroad; if the standards are too loose, it could trigger a nationwide referendum, leading to further uncertainty.
Crypto prices
More
