Proactive Investors - QUALCOMM, Inc. (NASDAQ:QCOM), the leading chip supplier for smartphones, reported strong Q1 earnings and outlined plans for expansion into AI-enabled chips, personal computers, and automotive technology.
The company’s fiscal Q1 results exceeded expectations with an EPS of $2.75, surpassing the estimated $2.37, and reported sales of $9.92 billion, outpacing the estimated $9.52 billion.
Qualcomm’s strong performance was fueled by robust handset sales, marking the end of a multi-quarter cycle of inventory sell-off and demand slowdown.
The automotive sector played a pivotal role, delivering record results and indicating a prosperous long-term outlook with a $30+ billion design pipeline. Qualcomm (NASDAQ:QCOM)'s strategic diversification into extended reality (XR), augmented reality (AR), and virtual reality (VR) is viewed positively, with partnerships with Samsung (KS:005930) and Google (NASDAQ:GOOGL) positioning Qualcomm to capture a substantial market share.
Despite a soft Internet of Things (IoT) business, Qualcomm anticipates sequential growth, aligning with expectations. The company's fiscal second-quarter profit forecast slightly exceeded Wall Street estimates, with sales projected to reach a midpoint of $9.3 billion and adjusted profit of $2.30 per share.
Shares of Qualcomm fluctuated in extended trading Wednesday. The stock price was around 1.5% below closing levels at around 5pm ET.