Post by : Badri Ariffin

Chipmaker Qualcomm raised its near-term revenue and profit forecast on Wednesday, pointing to a revival in demand for premium smartphones equipped to run AI features — yet the upbeat view was tempered by news the company will likely lose some volume from Samsung next year.

For the December quarter, Qualcomm now anticipates about $12.2 billion in revenue and $3.40 in adjusted earnings per share, topping LSEG consensus estimates of $11.62 billion and $3.31 per share. The guidance reflects growing global appetite for high-end handsets designed to support AI applications.

However, CEO Cristiano Amon said Qualcomm expects to supply roughly 75% of modem chips for Samsung’s upcoming Galaxy S26 series, down from full share in the current S25 models. The disclosure sent Qualcomm shares down about 2.7% in after-hours trade after an earlier intraday gain.

Expanding Beyond Handsets

With Apple gradually migrating to its own modem technology, Qualcomm has been broadening its addressable markets into PCs, automotive platforms and data-center processors. Amon also noted ongoing discussions with a "large AI computing firm," signaling progress in the company’s push into AI infrastructure.

Over the most recent fiscal year, Qualcomm’s revenue outside of Apple rose 18%, while handset chip sales grew 14% to $6.96 billion, beating analyst forecasts. CFO Akash Palkhiwala forecast handset revenue could climb by the low teens next quarter, implying at least $7.7 billion in sales.

AI Spurs Shift to Premium Devices

Amon credited the company’s momentum to consumers moving from mid-range phones into premium models that can support new AI-driven capabilities, describing a thinning of the mid-tier in major markets including China and India.

For the fiscal fourth quarter ended Sept. 28, Qualcomm reported $11.27 billion in revenue and $3.00 in adjusted earnings per share, both above analysts’ expectations.

While the immediate outlook is favourable, uncertainty over Samsung’s next-generation sourcing and Apple’s in-house modem transition remain potential headwinds. For now, demand for AI-capable devices is helping to sustain Qualcomm’s growth trajectory.

#Global