Qualcomm Stock Drops 5.73% Despite Record Revenue, Analysts Warn of Market Risks

Qualcomm's stock declined by 5.73% in early trading despite reporting record revenues of $11.7 billion for Q1 2025, driven by strong performance in the automotive and Internet of Things (IoT) sectors. The company exceeded Wall Street expectations with non-GAAP earnings per share of $3.41, significantly higher than the anticipated $2.99. Notably, Qualcomm's automotive revenue grew 61% year-over-year to $961 million, while IoT revenue increased by 36% to $1.5 billion. Despite these gains, investor concerns about a potential slowdown in smartphone demand have affected the stock's performance, particularly due to flat revenue guidance in the Qualcomm Technology Licensing segment. The company maintains a positive outlook, projecting Q2 revenues between $10.2 billion and $11 billion, and has emphasized its strategic push into AI and other rapidly growing sectors. Qualcomm's CEO confirmed that Arm Holdings has withdrawn its threat to terminate their licensing agreement, alleviating some concerns about future operations.