Qualcomm Forecasts Strong Sales Boost Amid AI-Driven Smartphone Demand, Faces Samsung Setback

Chipmaker Qualcomm projected higher-than-expected quarterly revenue and profit, signaling a rebound in premium smartphone sales fueled by growing consumer demand for AI-powered devices. However, concerns over potential business losses from Samsung Electronics next year sent Qualcomm shares down 2.7% in after-hours trading, despite a 4% gain earlier in the day.

For its fiscal first quarter ending December, Qualcomm anticipates sales around $12.2 billion and adjusted earnings of $3.40 per share, topping analyst forecasts of $11.62 billion and $3.31 per share, according to LSEG data. The company supplied 100% of modem chips for Samsung’s Galaxy S25 lineup but expects to provide about 75% for the upcoming Galaxy S26 series, CEO Cristiano Amon told Reuters.

While Samsung’s shift may weigh on future sales, Qualcomm continues diversifying into AI data center chips, automotive, and laptop markets as Apple phases in its own modems. Amon revealed ongoing talks with a major AI hyperscaler for chip supply, following its recent partnership with Humain, an AI firm backed by Saudi Arabia’s sovereign wealth fund.

Driven by an upgrade trend from midrange to premium smartphones capable of running AI applications, Qualcomm’s handset chip revenue climbed 14% to $6.96 billion, surpassing Visible Alpha estimates. CFO Akash Palkhiwalaprojected handset sales growth in the “low teens” for the next quarter, implying at least $7.7 billion, above analysts’ expectations.

For the fiscal fourth quarter ended September 28, Qualcomm reported revenue of $11.27 billion and adjusted earnings of $3 per share, beating Wall Street estimates. Despite challenges from Apple and Samsung, Amon remains optimistic, citing accelerating demand for AI-ready mobile devices as a key growth driver across global markets like China and India.