US chip designer Qualcomm reported a decline in revenue and profits for the quarter ending June, impacted by a drop in global smartphone sales driven by higher memory prices. Revenue fell 4% to $9.9bn, though it exceeded Wall Street expectations. Handset revenue saw a 20% year-on-year decrease to $5bn.

Chief executive Cristiano Amon cited a "challenging memory and supply environment" affecting costs and demand. Net income dropped 25% to $2bn. Amon anticipates non-smartphone revenue, including automotive and data centre business, to reach $40bn by fiscal year 2029. Qualcomm's stock experienced a roughly 5% dip after the announcement.

This downturn occurs as semiconductor stocks have recently declined. The Philadelphia Semiconductor Index has fallen over 10% this week. In contrast, UK chip designer Arm reported solid results, with revenue up 22% to $1.3bn, driven by strong data centre royalties and demand for its new "AGI CPU".

Both Qualcomm and Arm are pursuing opportunities in the AI processor chip market. Qualcomm announced Meta as its first major hyperscaler customer for its AI data centre processors. Arm, traditionally supplying chip designs, has also launched its own AI processor chip, a key element in Soft Bank's AI infrastructure efforts.