Qualcomm Sees AI-Led Upswing, but Samsung Modem Cut Dampens Mood

Qualcomm handed investors an upbeat earnings outlook this week, pointing to renewed demand for premium phones with AI features — but the mood cooled when the firm disclosed it may lose part of its Samsung business next year.

For the quarter ending in December, Qualcomm is guiding to roughly $12.2 billion in revenue and $3.40 in adjusted earnings per share, both above LSEG consensus of $11.62 billion and $3.31 a share. The company attributes the strength to rising global appetite for high-end handsets that can run AI-driven applications.

CEO Cristiano Amon said Qualcomm now expects to supply about 75% of modem chips for Samsung’s upcoming Galaxy S26 family, down from full supply for the current S25 models. The disclosure sent Qualcomm shares down 2.7% in after-hours trade after an earlier 4% intraday gain.

Growth Beyond Smartphones

With Apple moving toward in-house modem solutions, Qualcomm has been broadening into laptops, automotive systems and data-center semiconductors. Amon also noted ongoing discussions with a “large AI computing firm,” suggesting opportunities in the AI infrastructure market.

In the fiscal year just closed, Qualcomm’s revenue excluding Apple climbed 18%, while handset-chip sales rose 14% to $6.96 billion, beating estimates. CFO Akash Palkhiwala said handset revenue could increase by the low teens next quarter, implying at least $7.7 billion in sales.

AI Demand Drives Premium Phone Market

Amon credited the company’s momentum to consumers trading up from mid-range devices to premium phones capable of supporting new AI features. “You don’t have anything in the middle,” he said, describing a global shift visible in markets such as China and India.

For the fiscal fourth quarter ended Sept. 28, Qualcomm reported $11.27 billion in revenue and $3.00 in adjusted earnings per share, both ahead of analyst forecasts.

While AI-driven upgrades are bolstering near-term growth, the reduction in Samsung orders and Apple’s chip strategy introduce uncertainty for Qualcomm’s future trajectory. For now, demand for AI-capable devices is sustaining the chipmaker’s momentum.