Qualcomm today reported a better-and-up-applied financial first quarter earnings, although the fabless chip drowned in the trading shares of the designer’s trading shares. The first quarter earnings came to $ 3.41 per share, which was 24% above the last year’s fiscal Q1 results and the earning number was beyond the income of $ 2.96 which was expected by Wall Street. Revenue in $ 11.67 billion, increased 18% on an annual basis.
Mobile device manufacturers looked at their revenue growth up to $ 7.57 billion from 13% year-on-year. Wall Street analysts talking to the factset were looking for Qualcomm to announce the sale of chips for mobile products of $ 7.04 billion, which would have been an annual increase of only 5%; Qualcomm is more than double that estimate. According to the company’s CEO Cristiano Amon, the demand for the Snapdragon chipset of Qualcomm used on the premium, flagship smartphone was heavy.
Samsung’s Galaxy S25AP’s decision added $ 2 billion to Qualcomm’s Coffers this year. , Image credits
Qualcomm CEO Amon also said that the company will benefit from the recent release of the Deepsek R1A AI model outside China. This is because its snapdragon chips can run deepsek on the device instead of cloud. Qualcomm also sells chips used by Mata to run its popular ray-ban smart glass. In addition, the first Snapdragon Elite Chips for laptops went on sale last year and already in Qualcomm to have a 10% market share in chips for laptops priced at $ 800 and above.
So if everything is going well, why did Qualcomm’s shares fall $ 7.98 or 4.54% when the number was released? The decline is being blamed on the company’s intellectual property licensing revenue, with a high profit margin of 75% compared to 32% for chips. In this segment, a small miss in expectations ($ 1.56 billion of $ 1.56 billion of $ 1.56 billion in revenue) was sold in stock. To make the case worse, 2025 licensed revenue is expected to be reduced by 2%.
Qualcomm’s fastest growing trade segment is its automotive unit, with fiscal Revenue 61% gained $ 961 million.
