Qualcomm reports Q3 earnings amid declining smartphone demand and memory shortages, while expanding into AI data centers.
Qualcomm will release third-quarter earnings on Wednesday, revealing the impact of a global memory shortage on smartphone sales and its progress in the AI data center market. The company faces challenges as consumers delay phone upgrades and memory costs rise due to AI-driven demand, pressuring handset makers.
Analysts expect Qualcomm to post earnings per share of $2.21 on revenue of $9.6 billion, down from $2.77 and $10.3 billion in the same period last year. The decline reflects weaker smartphone demand and higher component costs, with unit growth turning negative.
To counter reliance on smartphones, Qualcomm is expanding into AI data centers, unveiling new servers and accelerators during its June investor day. The shift aims to capitalize on growing AI infrastructure demand amid a sluggish handset market.