The chipmaker posted revenue of $12.25 billion in that period. That narrowly missed the $12.28 billion that eight analysts polled by Zacks had noted. Qualcomm also previously reported earnings per share of $2.80 for the quarter ended Dec. 25, reinforcing that the current trend line is not deteriorating from a low base but a healthier one.

Qualcomm is pushing a number of specific moves in AI infrastructure and data center connectivity. The company has launched an AI solutions center in Riyadh through a partnership with Saudi company Humain. This project will deploy up to 200 megawatts of AI data center racks powered by Qualcomm hardware starting in 2026.

This initiative is based on the Qualcomm AI200 and AI250 platforms. These are designed to deliver solid computing performance for every dollar spent and for every unit of energy consumed, which suits large-scale AI inference.

Qualcomm is also expanding its intellectual property and data center capabilities through the acquisition. It initially struck a roughly $2.5 billion deal to buy U.K.-based Alphawave Semi, a specialist in high-speed connectivity chips, with closing targets for the first quarter of 2026.

This transaction was completed approximately one quarter ahead of schedule. It shows the speed of execution around what management considers a strategic technology.

Following the deal, Alphawave Semi’s chief executive and co-founder Tony Pialis has been put in charge of Qualcomm’s data center business. This move brings dedicated high-speed connectivity expertise directly into Qualcomm’s leadership structure.

Wall Street numbers at Qualcomm tell a mixed story that fits the “no bottom in sight” mood. For the March 2026 quarter, analysts see EPS falling to $1.94 from $2.35 a year ago, marking a 17.45% year-over-year decline that fits the “bottomless in 2026” narrative.

Qualcomm’s own guidance is brighter on the surface, with management projecting EPS between $2.45 and $2.65 and revenue in the range of $10.2 billion to $11 billion for the fiscal second quarter.

The full-year picture does not completely alleviate these concerns. For the fiscal year ending September 2026, the average earnings estimate is $9.61 per share, down from $10.07 a year earlier. This represents an expected decline in earnings of 4.57% for the year.

Even with this cooling earnings profile, one notable voice, Bernstein, argues that the company is positioned to benefit from continued AI-related spending and to gradually improve industry conditions, even if 2026 is bumpy.

The consensus position on the stock remains constructive rather than outright bearish. A group of 32 analysts collectively gets a “Moderate Buy” recommendation, reflecting the view that the earnings decline is manageable. The average target of $167.43 suggests about 22% upside from the recent price, indicating that analysts still see significant upside potential.

The message from Wall Street to QCOM is clear enough. The near-term earnings trajectory looks shaky and the market is no longer willing to overlook this uncertainty. The stock’s slide, softer growth profile in 2026 and heavy phone exposure help explain why more “sell” calls are coming out even as management leans more toward AI and data centers. Further downside or sideways action still seems more likely than a net rebound until memory constraints ease and fundamentals clearly improve. Until that twist in the numbers appears, caution still seems more realistic than bravado.

As of the date of publication, Ebube Jones had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com