Qualcomm expects its smartphone chip business to rebound in Q3 while targeting multi-billion-dollar revenue from data center markets.
Qualcomm CEO Cristiano Amon said the company’s handset chip business is constrained by memory costs rather than demand, signaling a potential bottom in the fiscal third quarter. He noted Qualcomm is under-shipping to consumer demand but expects sequential improvement afterward.
Amon highlighted Qualcomm’s diversification into automotive, IoT, and data center markets, calling data center the “next step” in expansion. The strategy includes CPUs, inference accelerators, and custom ASICs, with Samsung’s Snapdragon share now exceeding 70%.
The CEO also emphasized Qualcomm’s focus on premium-tier devices, citing strong demand despite a smaller overall handset market. Data center revenue potential was described as a “large total addressable market.”