Qualcomm Slides After Posting Lackluster Phone Chip Sales
Qualcomm shares fell as much as 6.2% Thursday in New York, their biggest intraday decline in three months.

Shares of Qualcomm Inc., the biggest maker of chips that run smartphones, fell after the company reported lackluster growth in that market, fueling concerns that tariffs will take a toll on the industry.
Phone-related sales rose 7% to $6.33 billion in the fiscal third quarter, which ended June 29, Qualcomm said Wednesday in a statement. The average analyst estimate was $6.48 billion, according to data compiled by Bloomberg.
The results add to broader fears that a chip growth resurgence is under threat. In recent days, semiconductor makers such as Texas Instruments Inc. and Intel Corp. gave cautious outlooks, triggering concern that a sales rebound will be short-lived.
Qualcomm shares fell as much as 6.2% Thursday in New York, their biggest intraday decline in three months. Heading into the earnings report, the chipmaker’s stock had already lagged a general rally by semiconductor stocks this year.
Chief Executive Officer Cristiano Amon said he didn’t understand why investors weren’t happy with the company’s results. The report showed that Qualcomm is executing on its plan and is on course to get half of its revenue from outside of the smartphone market, he said.
“The company has changed,” Amon said Thursday in an interview with Bloomberg Television. “The company has created a lot of growth opportunities.”
Arm Holdings Plc, another chip technology provider that serves the smartphone industry, also reported results on Wednesday. Its shares declined as much as 14% Thursday, the worst intraday plunge since April, after a profit forecast came in below estimates, hurt by spending on new products.
Qualcomm’s revenue in the quarter ending in September will be $10.3 billion to $11.1 billion, the San Diego-based company said. That compares with an average analyst estimates of $10.6 billion.
Third-quarter profit was $2.77 a share, excluding some items. Revenue gained 10% to $10.37 billion. Wall Street had predicted a profit of $2.72 a share and sales of $10.33 billion.
Revenue from chips used in vehicles rose 21% to $984 million. Connected-device semiconductor sales, meanwhile, climbed 24% to $1.68 billion.
Qualcomm supplies processors and modems that are the main components of the world’s most advanced smartphones. The chipmaker also collects fees calculated as a percentage of the cost of a handset, regardless of whether the phone maker uses its chips.
An ongoing challenge for Qualcomm is Apple Inc.’s decision to make its own modem chips for the iPhone. Qualcomm has told investors to expect its supplies in the device to be fully replaced, but delays in the development of an Apple part have lengthened this transition. Apple currently has an in-house modem in one of its iPhones, the low-end 16e.