Qualcomm has stepped up its attention to such areas as the data centers and personal computers.
To make the situation worse, perpetual threats by U.S. President Donald Trump to impose tariffs on semiconductors have become a threat, and this can cause disruption in the supply chain and dent the handset business of Qualcomm, they added.
Smartphones and semiconductor chips will be excluded as yet, but Trump threatened to add tariffs to semiconductors imminently, raising fears that part of the sector will be taxed.
The company is not getting any early chip orders indicating that customers are unwilling to go in advance to beat potential tariffs, as indicated by CFO Akash Palkhiwala speaking to Reuters.
The Chinese OEMs (original equipment manufacturers) are not ready to give up on (Qualcomm mobile phone chip) Snapdragon as the means of global 5G and AI-on-device marketings even though tariffs could cut mid-single digits off handset revenue.
Qualcomm, which is the biggest modem chip maker worldwide and is considered one of the smartphones bellwethers, reported that chip sales to non-Apple clients have improved by over 15 percent this financial year due to high end Android releases.
Samsung and Xiaomi long-term partnership and sustained share at Samsung present a significant support to the handset model amidst Apple chipset topline leaving the model, TD Cowen analysts added.
Qualcomm is also going strong in augmented reality.
According to the company CEO Cristiano Amon, the company now supports 19 augmented reality designs which are expected to increase in future such as the Ray-Ban smart glasses by META, opens new tab.
Qualcomm in its forecast gave a better earnings prediction in the fourth quarter than expectations of analysts, and Citi advisors cautioned that the exit of Apple remains a drag on organic growth.
The 12-month forward price-earnings multiple of this company stands at 13.36 versus 34.91 in Nvidia (NVDA.O), opens new tab, 47.14 in Intel (INTC.O), opens new tab and 35.33 in Advanced Micro Devices (AMD.O), opens new tab.
