Qualcomm set to report Q4 earnings as it enters AI data center market

Core Viewpoint - Qualcomm is diversifying its business by entering the AI data center market, launching new AI chips and rack-scale server products, while facing challenges in its traditional smartphone chip business [1][6][7]. Financial Performance - Qualcomm is expected to report earnings per share (EPS) of $2.85 on revenue of $10.7 billion for the upcoming quarter, compared to EPS of $2.69 on revenue of $10.2 billion in the same quarter of 2024 [4]. - The QCT segment, which includes smartphone, internet of things, and automotive businesses, is projected to generate $9.3 billion, reflecting a year-over-year increase of 7.6% [8]. - The QTL licensing segment is anticipated to bring in $1.4 billion [8]. Market Position and Competition - Qualcomm's stock rose 11% following the announcement of its new AI products, but it still lags behind competitors like Nvidia and AMD, with shares up only 8% over the past 12 months compared to Nvidia's 54% and AMD's 81% [3]. - The company is facing the risk of losing Apple as a major customer for wireless chips, as Apple is moving towards using its own custom chips [5]. Industry Trends - The AI data center market is expected to grow to approximately $114 billion by 2030, providing Qualcomm with an opportunity to diversify away from the low-growth smartphone market, which currently accounts for about 75% of its revenues [7].