Qualcomm Rides AI Wave To Record Quarter, But Lowered Q2 Guidance Thanks To Seasonality And Apple Shipments Drags Down Stock

Despite beating the street’s earnings expectations, posting a record first-quarter revenue, and showcasing strength in on-device artificial intelligence inference, Qualcomm Inc. (NASDAQ:QCOM) shares fell 4.6% after market hours over the weak second-quarter guidance.

What Happened: Qualcomm's QCT segment delivered a record $10.1 billion in the first quarter, up 20% year-over-year.

However, the company CFO and COO, Akash Palkhiwala, during its earnings call said that Qualcomm expects QCT revenues of $8.9 billion to $9.5 billion.

QCT, which stands for Qualcomm CDMA Technologies, is a division of Qualcomm, one of the largest suppliers of wireless chipset technology and software solutions.

“On a sequential basis, the decline in QCT handset revenues is primarily driven by seasonality and shipments to Apple,” added Palkhiwala.

Furthermore, from an earnings-per-share perspective, the CFO added that “third quarter is the low point because you don’t have as many flagship launches in it.”

Thus, despite a strong first quarter the stock took a beating and fell 4.6% in after-hours to $167.77 apiece. The shares ...

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