Quick overview

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Qualcomm reported that its current-quarter revenue exceeded Wall Street’s expectations,  a wager that the advancement of artificial intelligence in consumer devices would increase demand for its semiconductors.

Qualcomm projected adjusted earnings of $2.85 per share at the midpoint, with expected revenue of $10.7 billion for the current quarter.  Analysts anticipated adjusted earnings of $2.83 per share on revenue of $10.35 billion.

Qualcomm reported a net income of $2.66 billion in the June quarter or $2.43 per share, compared to $2.13 billion, or $1.88 per share, during the same period last year.

Qualcomm’s primary business is selling smartphone chips under the Snapdragon brand, which includes the central processor and modem for high-end Samsung devices. The company also supplies modems to Apple.

Qualcomm’s handset chip division generated $6.33 billion in revenue, slightly below the Wall Street expectation of $6.44 billion. Looking ahead, Qualcomm anticipates Apple’s loss as a client for its modem business.

The company is working to expand its offerings by producing chips for other devices, such as Windows PCs, Meta Ray-Bans, and Quest virtual reality headsets.

CEO Cristiano Amon highlighted Qualcomm’s partnership with Meta, emphasizing the company’s focus on “personal AI”—AI applications that operate on devices instead of relying solely on cloud processing.

This strategy is showcased in their production of chips for products like Meta’s smart glasses. Qualcomm’s “Internet of Things” (IoT) division reported revenue of $1.68 billion for the quarter, which includes revenue from its work with Meta.

“The growth we observed this quarter in IoT relates to our work with smart glasses,” Amon stated, referencing Mark Zuckerberg’s recent vision of “personal superintelligence.” CFO Akash Palkhiwala added that Meta’s chip consumption during the quarter was higher than expected.