Summary
- Qualcomm (QCOM) stock trades flat after mixed earnings but shows signs of momentum
- AI chip demand and 5G patent growth offset smartphone market weakness
- Analysts focus on automotive, IoT, and AI edge computing as next growth levers
- QCOM sees rebound in licensing revenue tied to AR/VR device rollouts
- Technical indicators show tightening wedge, with breakout potential in May
Qualcomm Stock Holds Ground After Mixed Q2 Earnings
Qualcomm (QCOM was in the spotlight on May 1, 2025, as investors digested the company’s latest quarterly earnings and forward guidance. The stock ended the session nearly flat at $134.21, reflecting a cautious but stable market reaction amid shifting sentiment in the semiconductor sector.
Although revenue from mobile handset chips dipped slightly year-over-year, strong performance in Qualcomm’s AI, automotive, and IoT divisions helped stabilize overall growth. Analysts were particularly focused on margin resilience and strategic positioning as the company moves deeper into the edge AI race.
Earnings Snapshot: Q2 2025 Highlights
- Revenue: $9.76 billion (vs. $9.72B expected)
- EPS: $2.18 (vs. $2.12 expected)
- Automotive Revenue: $975 million (+28% YoY)
- IoT Revenue: $1.79 billion (-3% YoY)
- Licensing (QTL): $1.55 billion (+9% YoY)
While QCOM’s core handset business faced ongoing macro headwinds, the growth in non-smartphone segments provided optimism. Demand for Qualcomm’s Snapdragon Ride platform and its custom AI inference chips in next-gen wearables was a highlight.
What Analysts Are Watching: Edge AI and Connected Cars
Wall Street is increasingly valuing Qualcomm’s diversification strategy, especially its early-mover advantage in automotive semiconductors and AI-enabled edge devices.
“We believe Qualcomm’s licensing model and AI roadmap are underappreciated,” said JP Morgan analyst Mike Ott. “The real upside is in sectors like smart vehicles and connected manufacturing.”
With several major carmakers including BMW and GM doubling down on software-defined vehicles, QCOM’s embedded hardware and over-the-air update infrastructure are expected to play a key role.
AR/VR Licensing Gains Offer a Quiet Tailwind
In an overlooked segment, Qualcomm’s QTL licensing unit posted stronger-than-expected revenue — boosted by higher royalty flows from new XR devices built on Snapdragon platforms.
Meta, Apple, and Sony all launched or refreshed AR/VR hardware in Q1, many of which depend on Qualcomm’s IP stack for mixed reality processing, modem integration, and AI sensor fusion.
This signals a potential rebound in a category that had stagnated post-2023, offering long-term upside via licensing fees without heavy R&D spending.
Technical Picture: Coiled for a Move
QCOM’s daily chart shows a tight symmetrical wedge, with price compressing between the 50-day and 200-day moving averages. RSI sits near 54 — neutral but slightly bullish — and MACD lines are poised to cross to the upside.
If volume picks up, the next resistance is seen around $139.50, with support near $130.80. A clean breakout could target the $145–$148 range, especially if macro tech sentiment improves in early May.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
Since 2023, Yoshi Ae has combined storytelling and community insight as a PR writer, creating content that resonates across platforms like X and Discord. From press releases to narrative campaigns, Yoshi bridges brand messaging with real-time community engagement.
