Qualcomm sales top estimates amid strong smartphone demand

Qualcomm has forecast sales and profits above analyst expectations, with AI features fueling demand for smartphones. 

Qualcomm forecast a sales range with a midpoint of USD 10.75 billion and adjusted profits of USD 2.80 per share, both above analyst estimates, according to data from LSEG.

During a conference call with analysts, Qualcomm executives said its patent licensing business will not see sales growth this year after an agreement with Huawei expired, according to a Reuters report.

Qualcomm CEO Cristiano Amon said on a call with analysts that the company believes the recent release of the DeepSeek R1 AI model is good for Qualcomm, according to a report by CNBC.

“DeepSeek R1 and other similar models recently demonstrated that AI models are developing faster, becoming smaller, more capable and efficient, and now able to run directly on device,” Amon said.

Though Qualcomm stopped selling chips to Huawei, it still retained a license agreement with the Chinese company. 

“The Huawei discussions are still in play, so the numbers don’t actually include the potential from a renewal with Huawei,” Alex Rogers, Qualcomm’s licensing chief, said.  

Qualcomm recently secured a major deal with Samsung to provide chips for the South Korean firm’s mobile phones around the world. Qualcomm is also working with Microsoft and computer manufacturers to offer laptops and PCs based on its chips, the Reuters report said.

Qualcomm reported sales of USD 11.67 billion for its fiscal first quarter ended December 29.  

Its fiscal first quarter automotive chip revenue was USD 961 million while sales from “internet of things” chips were USD 1.55 billion, the company said.