Qualcomm Stock Surges 15% After-Hours on Data Center Chip Breakthrough; China Phone Demand Expected to Recover

According to Qualcomm CEO Cristiano Amon on April 30, the company will begin delivering data center chips to a major hyperscale cloud operator later this year, marking a key breakthrough into the AI infrastructure market. Amon also stated that China's smartphone market is expected to bottom out in the third quarter and resume sequential growth thereafter.

Qualcomm reported second-quarter revenue of $10.6 billion, down 3% year-over-year, with net income of $7.4 billion, up 162%. The company's handset business declined 13% to $6.02 billion amid storage chip price pressures, while automotive revenue hit a record $1.33 billion, up 38%.