Qualcomm (QCOM) is set to announce its third-quarter fiscal 2025 earnings on July 30, amid a period of strategic acquisitions aimed at bolstering its artificial intelligence capabilities and navigating a competitive market. Analysts project revenues of $10.36 billion and earnings of $2.68 per share.
A key development in the quarter was the launch of the Snapdragon 7 Gen 4 Mobile Platform, which offers enhanced AI performance, gaming, and content creation features. The new platform has already secured commitments from major OEMs, including HONOR, vivo, and realme, for their upcoming devices.
To further strengthen its technology portfolio, Qualcomm made several key acquisitions. The company purchased Autotalks to advance its vehicle-to-everything (V2X) offerings for smarter transportation systems. It also acquired MovianAI, the former generative AI division of VinAI, to integrate expertise in machine learning and natural language processing. Additionally, Qualcomm entered a definitive agreement to acquire Alphawave Semi, a provider of high-speed connectivity products for 5G, AI, and data center applications.
The company also expanded its global footprint, partnering with technology group e& to enhance digital infrastructure in the UAE and aligning with Saudi Arabia’s Vision 2030 initiative. This includes collaborations with HUMAIN to develop AI data centers and with Aramco Digital to support industrial IoT solutions.
Despite these growth initiatives, Qualcomm faces significant headwinds. The company is experiencing margin pressure in the mid-range smartphone market due to fierce competition from low-cost chipmakers such as MediaTek. To counter this, Qualcomm is integrating more advanced AI features into its mid-range chips and collaborating closely with manufacturers.
Furthermore, established rivals pose ongoing challenges. Intel’s growing focus on the AI PC market presents a threat to Qualcomm’s expansion in that segment, while Broadcom remains a formidable competitor in supplying RF components to major smartphone manufacturers.
Historically, Qualcomm has demonstrated a strong track record, consistently surpassing earnings estimates over the past four quarters. From a valuation perspective, its shares are currently trading at a lower forward price-to-earnings ratio compared to the industry average. However, over the past year, the company’s stock has declined 10.3%, lagging the broader industry’s 41% growth.
Qualcomm’s long-term strategy is heavily focused on leading the next wave of AI innovation and diversifying its business. Growth in high-end smartphones, along with increasing traction for its Snapdragon Digital Chassis in the automotive sector and opportunities in AI PCs and the IoT space, are key positive indicators. Investors will be watching for commentary on how the company plans to address persistent margin pressure and competition in its upcoming earnings report.
Source link
