Chip Stocks Face Mixed Outcomes as Qualcomm and AMD Report Diverging Results

Qualcomm outperformed expectations with record smartphone chip revenue, while AMD missed data center forecasts, leading to stock volatility for both companies.

Qualcomm reported record quarterly smartphone chip revenue of $7.57 billion, surpassing analyst expectations by over $500 million.
Despite strong earnings, Qualcomm's stock declined after-hours, partly influenced by cautious guidance from peer Arm Holdings and broader market factors.
AMD posted a 71% year-on-year growth in data center segment revenue but fell short of Wall Street's $4.15 billion forecast, leading to a 9% drop in its stock price.
Analysts adjusted AMD's price targets downward, citing challenges in competing with Nvidia's dominance in AI chips and slower-than-expected data center growth.
Both companies highlighted long-term growth strategies, with Qualcomm focusing on diversification and AMD emphasizing its AI and data center product roadmap.