Qualcomm reported quarterly earnings on Wednesday that beat Wall Street estimates and announced a major sale of AI chips, prompting its stock to jump nearly 17% in after-hours trading.
The San Diego-based wireless pioneer earned $7.370 billion, or $6.88 per share, on revenue of $10.599 billion in the second fiscal quarter ended March 29, compared to $2.812 billion, or $2.52 per share, on revenue of $10.979 billion in the same quarter a year ago.
The latest earnings included a deferred $5.7 billion income tax benefit resulting from “additional guidance issued on corporate alternative minimum tax,” according to the company.
On an operating basis, Qualcomm reported a 7% decline in earnings on 2% lower revenue.
With the results beating Wall Street’s expectations, and the AI chip announcement, shares rose as high as $182.20 in after-hours trading, a nearly 17% increase from the $156.00 close.
“We are pleased to deliver results in line with our guidance, reflecting solid execution as we navigate a challenging memory environment,” said Cristiano Amon, president and CEO.
He was referring to the shortage in memory chips caused by artificial-intelligence data center demand that is affecting smartphone sales.
As a result, company’s revenue from handset technology fell 13% during the quarter. However, revenue grew 38% for automotive technology and 9% for connected devices — the “internet of things.”
Amon said Qualcomm is focused on incorporating AI into its products, and is offering technology for data centers. He said “a leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year,” though offered no further details.
“We are in a period of profound industry transformation — the rise of AI agents is reshaping our roadmap across every platform we develop,” he said.
