San Diego’s hometown chip titan Qualcomm lit up Wall Street in after-hours trading yesterday, with shares ripping higher after a solid quarterly beat and a surprise reveal of a major AI chip sale tied to a big cloud customer. The stock was chased up to $182.20, about 17 percent above its prior close, as the company talked up a rapid push into data-center silicon that had investors scrambling to catch up.
Earnings and the tax bump
For the quarter ended March 29, Qualcomm reported revenue of $10.599 billion and GAAP net income of $7.37 billion, or $6.88 per share, helped in a big way by a deferred $5.7 billion income-tax benefit the company linked to new IRS guidance. On a non-GAAP basis, the measure most analysts track, Qualcomm earned $2.65 per share, topping Street expectations, according to Qualcomm's earnings release.
Handsets sag while auto and IoT climb
Breaking down the results, Qualcomm said QCT revenue totaled about $9.08 billion. Within that, handset revenue fell 13 percent, while automotive revenue jumped 38 percent and IoT rose 9 percent. “We are pleased to deliver results in line with our guidance, reflecting solid execution as we navigate a challenging memory environment,” Chief Executive Cristiano Amon said in the company filing. The segment mix and Amon’s comment are detailed in Qualcomm's earnings release.
Data-center pivot and the hyperscaler engagement
The real plot twist came from management’s confirmation that Qualcomm is working with a “leading hyperscaler” on custom silicon, with initial shipments expected later this calendar year. That timeline points to a faster-than-anticipated entry into data-center chips. Coverage from Dow Jones noted the company is targeting the December quarter for first shipments and that executives kept quiet on who the cloud customer actually is. The disclosure has many investors suddenly re-evaluating Qualcomm as more than a smartphone-chip story, according to the Dow Jones report.
Market reaction and guidance
Once the numbers and AI-chip news hit the tape, traders piled in. Shares surged in extended trading, climbing to $182.20 from a regular-session close of $156, a roughly 17 percent after-hours pop. At the same time, Qualcomm set guidance for the current quarter of $9.2 billion to $10 billion in revenue and non-GAAP earnings of $2.10 to $2.30 per share, a range some analysts see as intentionally cautious. Local business coverage highlighted the sharp mood swing on the stock in late trading, according to Times of San Diego.
What to watch next
Investors now have June 24 circled, when Qualcomm will host an Investor Day that is expected to offer a deeper look at its data-center roadmap and so-called physical-AI plans. Management also rolled out a fresh $20 billion share repurchase authorization, on top of recent buybacks already in motion. Market coverage noted that pulling forward the hyperscaler engagement, combined with the aggressive capital-return program, helped flip early post-earnings jitters into a rally, even as memory-supply constraints and ongoing China handset weakness continue to loom in the background. For more details on the buyback, guidance, and data-center timeline, see SiliconANGLE.
