Qualcomm and Arm see momentum in AI, but smartphone weakness weighs on both stocks
Qualcomm and Arm both miss on smartphones, but their AI businesses are firing. Here's what the divergence means for chip strategy.
Why it matters
Two major semiconductor players are experiencing a bifurcation: traditional smartphone revenue under pressure from component costs and pricing, but AI chip demand offsetting weakness. This signals where the market is shifting capital and R&D focus.
The key facts
10 to knowQualcomm Q3 earnings missed Wall Street expectations
Arm also warned of sluggish smartphone demand
Memory chip cost inflation cited as key headwind for smartphone pricing
Both companies report AI momentum gaining traction
Stock trading lower after-hours on earnings miss despite AI strength
Qualcomm Q3 earnings fell short of Wall Street expectations
Qualcomm beat on AI momentum despite miss
Arm Holdings also trading lower
Smartphone demand sluggish due to rising component costs, particularly memory chips
After-hours stock decline for both companies
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Publisher excerpt: Shares of the chipmakers Qualcomm Inc. and Arm Holdings Plc were trading lower after-hours today after warning of sluggish demand in the smartphone industry due to rising prices relating to the cost of key components such as memory chips. Qualcomm reported third-quarter earnings that fell just…