Qualcomm narrowly beat earnings expectations, but investors focused on a weak phone business. The chipmaker reported adjusted earnings of $2.17 per share against $2.16 expected, and shares fell about 7% in after-hours trading, CNBC reports.
Handset chip revenue fell 26% to $5.14 billion and adjusted revenue declined 7%. For the current quarter Qualcomm guided to adjusted EPS of $2.15 to $2.35 on revenue of $10.4 billion to $11.2 billion, versus analyst expectations of $2.27 and $10.48 billion. «We don't have a demand issue; it's a supply issue,» CEO Cristiano Amon said, according to CNBC.
The growth story is data centers. Qualcomm booked $650 million in data center revenue in the quarter, CNBC says. The Verge reports the company is targeting $5 billion in data center revenue by the end of 2027 and $15 billion by 2029, when it expects data centers to make up about 30% of the business, helped by partnerships with Amazon and Meta.
