Qualcomm posts softer Q3 as new chips target AI and data centers

what happened

TradingView reports that Qualcomm’s third-quarter revenue reached $9.9B, down 4% from a year earlier. Handset-chip sales dropped 20% to $5.1B, while automotive revenue climbed 61% to $1.6B. The company repeated its objective of reaching $40B in non-handset revenue by FY2029.

At India Mobile Congress 2026, Qualcomm introduced the Snapdragon 8 Elite Extreme Gen 6 and Snapdragon 8 Elite Gen 6. iQOO 16, Motorola Signature 27 and Xiaomi 18 Pro announced the first devices using the new platforms. Qualcomm also signed a multiyear agreement to provide Meta with Dragonfly C1000 data-center CPUs. Volume production is scheduled for H2 2028, while revenue from two hyperscalers is expected to begin in late 2026.

CEO Cristiano Amon said major AI companies want Qualcomm chips to run models with up to 100B parameters on smartphones by 2028. The company highlighted local AI features that interpret user intent, make recommendations and perform tasks on the device, along with Adreno Neural Fusion for gaming and advanced imaging. Meanwhile, the FTC is examining an undisclosed transaction through the Hart-Scott-Rodino process, with no financial terms made public. In litigation, Qualcomm submitted Arm records in which executives referred to Qualcomm as the “enemy” and expressed concern about falling royalties; Arm said Qualcomm had not established actual damages. Amon testified in a Delaware bench trial on whether Arm negotiated in good faith, with a ruling expected after the main verdict. Competition is also increasing as Arm begins selling its own AI and data-center chips. TradingView noted that Qualcomm invested ~$20.3B in Jio Platforms in 2020 and owns ~33%; at a $100B valuation, the holding would be about $32B, implying an annual return of ~7.6% based on prospectus figures.

why it matters

For QCOM, weaker handset demand is set against automotive and data-center expansion, while the FTC review, Arm dispute and new competition add uncertainty around the company’s growth plans.

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