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Qualcomm (QCOM) Q3 2023 earnings results beat EPS expectations on slight revenue miss

Qualcomm handset chip sales continue to decline as the company looks towards AI.

Ozzie Mejia

August 2, 2023 1:26 PM

Qualcomm

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Chip manufacturer Qualcomm has released its earnings report for Q3 2023. The company slightly missed its expected revenue number, though it beat EPS expectations.

Qualcomm (QCOM) reported in with a revenue figure of $8.45 billion USD. That's both slightly lower than the $8.5 billion projected by Wall Street and lower than the $9.2 billion figure that the company put up for Q2 2023. However, the reported $1.87/share EPS surpassed Wall Street's expected $1.81/share. Back during its Q2 2023 report, Qualcomm had projected lower expectations for the following quarter. That was mainly over declining handset chip sales, as reported by CNBC. With that said, Qualcomm sees a potentially bright future with the emergence of AI technology.

"We are pleased with our technology leadership, product roadmap and design-win execution, which position us well for growth and diversification in the long term," President and CEO of Qualcomm Incorporated Cristiano Amon said in the Qualcomm Q3 2023 earnings report. "As AI use cases proliferate to the edge, on-device AI has the potential to drive an inflection point across all our products. Qualcomm remains best positioned to lead this transition given the unmatched accelerated computing performance with the power efficiency of our platforms."

The stock market on Wednesday closed with Qualcomm (QCOM) down $2.81/share and continues to fall in after-hours trading as of the time of this post.

Qualcomm chips and technology can be found across the tech sector, most notably in smartphones and other mobile devices. While handset chip sales continue to decline, the company is looking to AI for the immediate future. Qualcomm previously announced a partnership with Meta to bring Llama v2 LLM to smartphones. The manufacturer's tensor processor unit (TPU) is expected to be able to run the complex calculations required by AI models.

We'll continue to monitor the latest from Qualcomm. That includes Wednesday's Q3 2023 earnings call and Q&A, which will air live later today. We'll have it on the Shacknews YouTube channel both live and on demand. Be sure to follow the Qualcomm topic page for the latest updates.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?