Qualcomm Surges 15% as CEO Calls Smartphone Bottom, Boosts Data Center Outlook
Summary
Qualcomm's shares surged 15% in extended trading despite the company forecasting third-quarter results below analyst expectations, with revenue projected between $9.2 billion and $10 billion against estimates of $10.27 billion, and adjusted EPS between $2.10 and $2.30 versus estimates of $2.45. The significant positive market reaction was primarily driven by CEO Cristiano Amon's strong comments indicating a smartphone market rebound, stating "We can now call the bottom" after fiscal Q3. This optimism, coupled with further details on the company's strategic data center chip push—including plans to ship products before year-end and develop CPUs, accelerators, and custom ASICs—outweighed the weaker guidance. This news provides crucial context to the previously reported Q2 earnings and data center entry. Traders will now focus on the actualization of the smartphone recovery and the execution of Qualcomm's data center strategy, particularly as key customers like Apple and Samsung continue to develop their own in-house chips.
At the time of this announcement, QCOM was trading at $177.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $166.5B. The 52-week trading range was $121.99 to $205.95. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: CNBC TV18.