Qualcomm forecasts solid quarter but smaller Samsung business hits shares

Core Viewpoint - Qualcomm forecasts quarterly sales and profit above market expectations due to a rebound in premium smartphone sales, but potential loss of business from Samsung may impact future performance [1][2][3] Financial Performance - For the fiscal first quarter ending in December, Qualcomm expects sales of $12.2 billion and adjusted profit of $3.40 per share, exceeding analyst estimates of $11.62 billion and $3.31 per share [2] Customer Dynamics - Qualcomm supplied 100% of modem chips for Samsung's Galaxy S25 models but anticipates a reduction to 75% for the Galaxy S26 [3] - Apple, Samsung, and Xiaomi collectively account for over 10% of Qualcomm's revenue [6] Market Trends - There is a trend of consumers upgrading from midpriced smartphones to more expensive devices to support AI applications, leading to a division in the market between low-end and premium devices [5] - The premium smartphone tier is expanding globally, particularly in markets like China and India [5] Strategic Initiatives - Qualcomm is diversifying into laptops, automobiles, and data center chips, especially after Apple’s transition to its own modems [4] - The company is in discussions with a large AI computing company to supply chips, indicating a focus on AI-related markets [4][7]